KEY POINTS
- PSX, NCCPL, and CDC jointly issue guidelines for trading accounts of minors under SECP supervision
- New framework enables minors’ early participation in capital markets through guardians
- Transition to regular accounts at 18 outlined with tax treatment details
ISLAMABAD: The Pakistan Stock Exchange (PSX), in collaboration with the National Clearing Company of Pakistan Limited (NCCPL) and the Central Depository Company of Pakistan Limited (CDC), has introduced guidelines for opening trading accounts for minors under 18 years of age.
The move was taken under the guidance of the Securities and Exchange Commission of Pakistan (SECP), according to a press release of the Commission.
The new guidelines mark a milestone in promoting investor awareness and financial inclusion by encouraging young Pakistanis to participate early in the capital markets.
According to the PSX statement, the framework aims to instil financial discipline, build saving habits, and expose the younger generation to formal investment mechanisms from an early age.
Under the issued framework, minors will be able to open and operate trading accounts in the capital markets through their natural or court-appointed guardians.
The guidelines clearly outline the modalities, terms and conditions, and compliance requirements for such accounts, ensuring both accessibility and regulatory safeguards.
The framework also includes provisions for the automatic transition of a minor’s account into a regular trading account once the individual reaches 18 years of age. It further details the tax implications of transferring securities during that transition.
The SECP has termed the step a progressive measure to expand investor participation and nurture a financially aware future generation.
The detailed guidelines have been made available on the Pakistan Stock Exchange’s official website.
