The Pakistan Stock Exchange (PSX) has announced new rules to streamline the process of opening trading accounts for individuals under 18. Developed in collaboration with the National Clearing Company (NCCPL) and Central Depository Company (CDC), and approved by the Securities and Exchange Commission of Pakistan (SECP), these guidelines aim to enhance transparency, accountability, and investor protection.
Previously, there was no standardized framework for minors to participate in stock trading, leading to operational and compliance challenges for brokers. The new framework ensures that all such accounts are opened under the supervision of a guardian while meeting SECP’s AML/CFT regulations.
According to PSX, all securities brokers must now follow the prescribed procedures and compliance checks for minor accounts. Guardians are required to submit valid NADRA documents (Juvenile Card, Form-B, or Child Registration Certificate) and, if not the father, provide a Guardianship Certificate from a court.
| Activity | Key Requirement |
| 1. Account Opening | Guardian submits identity documents and passes AML/CFT checks. |
| 2. Account Title | “Name of Minor (Minor) through Name of Guardian (Guardian)”. |
| 3. UIN Registration | Guardian’s UIN used until minors’ UIN functionality is added. |
| 4. Account Operation | Only guardian can trade or make investment decisions. |
| 5. Transactions | Done via minor’s, joint, or guardian’s bank account. |
| 6. Trading Restrictions | Futures, leverage, and same-day square-ups are not allowed. |
| 7. Upon Turning 18 | Account suspended for new trades until a regular account is opened. |
| 8. Tax Handling | Inventory transfers retain cost and acquisition date to avoid capital gains tax. |
A PSX official stated,
“This initiative will encourage early financial literacy and responsible investing while ensuring regulatory safeguards remain intact.”
Industry experts have praised the move, noting it will help young investors understand market dynamics under adult supervision, promoting a culture of long-term savings and investment in Pakistan.