Frequently Asked Questions (FAQs) on Sahulat Accounts

Who Can Open a Sahulat Account?

All resident Pakistani individual customers can open a Sahulat Account in a single capacity. This account type is specifically designed to cater to individual needs, ensuring ease of access and compliance with regulatory requirements. A Sahulat Account is intended for individual use, meaning it cannot be opened as a joint account or under multiple names.

Can a Sahulat Account Be Opened Using an Online Account Opening Facility?

Yes, Securities Brokers are encouraged to provide digital/online account opening facilities to their customers. This means you can open a Sahulat Account from the comfort of your home using the internet. Online account opening makes the process quicker and more convenient, as you do not need to visit the broker’s office in person.

What Is the Maximum Investment Amount That Can Be Maintained in a Sahulat Account?

The maximum investment amount that can be maintained in a Sahulat Account is PKR 800,000. This limit is set to ensure that the account remains manageable and within the regulatory framework designed for such accounts. Keeping the investment amount within this limit helps maintain the simplicity and low-risk nature of the Sahulat Account.

Which Markets Can a Sahulat Account Holder Trade In?

Sahulat Account holders can only trade in the Regular market. Trading in leverage and futures markets is not permitted for Sahulat Account holders, ensuring that the account remains low-risk and easy to manage. The Regular market involves buying and selling stocks in a straightforward manner without using borrowed funds or engaging in high-risk trading activities.

What Documents Are Required for Opening a Sahulat Account?

To open a Sahulat Account, a Computerized/Smart National Identity Card (CNIC/SNIC) may be used as proof of identity. This simplifies the account opening process by requiring minimal documentation. You will need to provide a copy of your CNIC/SNIC when applying for a Sahulat Account, ensuring that your identity is verified.

However, since you will need to send money to your brokerage account, they will also ask you to provide your bank account details.

What Evidence for Source of Income Is Required from a Customer for Sahulat Accounts?

No additional document is required from the customer for establishing his/her source of income where the customer is identified as a low-risk customer. This makes the process straightforward for those who qualify as low-risk.

What Documents Are Required for Opening a Sahulat Account in Case of a Minor?

In the case of minor accounts, the security broker shall obtain a photocopy of Form-B, Birth Certificate, or Student ID card (as appropriate) from the minor. Additionally, a photocopy of the identity document of the guardian shall be obtained. This ensures that the minor’s identity is verified and that a responsible adult is managing the account.

Can Joint Account Holders Open a Sahulat Account?

No, Joint accounts are not allowed for Sahulat Accounts. This ensures that the account is managed solely by the individual account holder, maintaining simplicity and compliance. A Sahulat Account is meant for single users only, so it cannot be shared or jointly held with others.

Can More Than One Sahulat Account of the Same Customer Be Opened?

No, it cannot be done. A customer is only allowed to have one Sahulat Account, whether with the same broker or another, ensuring adherence to the account’s regulatory limits. This rule helps prevent the misuse of Sahulat Accounts by limiting each person to just one account.

If a Customer Already Has a Normal Trading Account with a Securities Broker, Can He/She Open a Sahulat Account as Well?

Any person that already has a normal trading account with a Securities Broker cannot open a Sahulat Account with any Securities Broker. Additionally, an existing normal trading account cannot be converted into a Sahulat Account. The existing system has checks in place to restrict any securities broker from opening a Sahulat Account for a customer who already has a normal trading account.

Can a Securities Broker Ask for Additional Documents from the Customer?

Based on the characteristics of the Sahulat Account, it can be marked as low risk. However, to comply with FATF standards and the AML/CFT regulatory framework, risk must be evaluated using elements such as the type of customer, product, delivery channel, and geography. This information is available in the Sahulat Account Opening form, and no further documents are mandatory for risk assessment.

Can Brokers Categorize High Net Worth Individuals (HNWI) as High Risk Even If They Have Sahulat Accounts?

Sahulat Accounts may be treated as low risk due to transaction value limits and other controls. However, brokers may consider other risk factors such as customer type, products, delivery channel, and geography when making a decision. The final risk rating is assigned based on these factors, and brokers may categorize accounts accordingly.

Can a Sahulat Account Be Opened for Individuals Who Are Not Ultimate Beneficial Owners (UBO) of Their Accounts?

Yes, but the Securities Broker must verify the UBO’s identity using NADRA Verisys/Biometric and perform simplified KYC for the UBO. This ensures the account’s compliance with regulatory requirements. The UBO’s identity verification helps ensure that the account is not being used for illicit activities.

Why Do Securities Brokers Apply Simplified Due Diligence Measures for Sahulat Accounts of Low-Risk Customers?

Simplified due diligence is the lowest level of due diligence and is appropriate for low-risk products/services. Since Sahulat Accounts carry low ML/TF risk due to restrictions like financial thresholds and limited account operation, simplified due diligence measures are applied by the Securities Brokers. This approach reduces the burden on customers while ensuring compliance with regulatory standards.

Is It Permissible to Allow Transactions Beyond the Specified Limits in a Customer’s Sahulat Account?

No, purchasing securities beyond the prescribed limit is not permissible. However, clients may sell securities if the portfolio value increases over time. This restriction ensures that the account remains within the regulatory limits designed for Sahulat Accounts.

Is the Securities Broker Obligated to Decline Any Buy Order/Transaction in a Sahulat Account in Excess of Specified Limits?

Yes, the Securities Broker must ensure all restrictions on Sahulat Accounts are observed. This includes adhering to clauses regarding the limited mandate of Sahulat Accounts in the Account Opening Form. Brokers are required to enforce these limits to ensure compliance with regulatory requirements.

If a Sahulat Account Holder Wants Transactions Higher Than Specified Limits, Does the Customer Have Such an Option?

Sahulat Accounts have a maximum investment limit. If a customer wishes to invest beyond this limit, they can convert their Sahulat Account into a normal trading account after fulfilling the relevant requirements. This provides flexibility for customers who want to increase their investments.

Will Statements Be Provided to Sahulat Account Customers and at What Frequency?

Securities Brokers must provide quarterly account statements based on cash and securities ledgers and CDC sub-account records. Customers should report any discrepancies within seven days of receipt. Brokers must also provide account statements for any period specified by the customer upon request. This ensures transparency and helps customers keep track of their investments.

Can an Account Opened Before 2012 (Pre-CKO Implementation) Be Classified Under or Considered a Sahulat Account If It Meets the Requirements?

No, such accounts cannot be classified as Sahulat Accounts. However, they can be classified as low-risk normal accounts, and the same level of simplified due diligence will be applied. This ensures that older accounts still comply with current regulatory standards.

Source: CDC Website