First online-only securities broker receives SECP licence
KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has issued a licence to Tamkeen Securities (Pvt) Ltd, a leading fully digital, online-only securities broker in Pakistan, further breaking new ground. The licence confirms a major step forward in modernising the country’s capital markets and broadening access, opening the door to democratise investment for retail and both institutional investors across the country.
The digital brokerage is licensed to allow investors to open accounts and conduct trades without requiring any physical presence, paperwork and traditional brokerage channels. This initiative is in line with the SECP’s strategic vision to facilitate digital transformation, promote financial inclusion and institutionalize innovation in Pakistan’s capital markets, said the press release on Monday.
This makes Pakistan one of the global markets that have fully digitised its trading platform in Pakistan, meeting the demands of tech-savvy investors and helping lift the stock market’s retail participation. The five fully digital onboarding transaction process is likely to attract a wider range of investor, promote higher stock market participation rate, improve the liquidity and enhance the overall confidence of investors.
The commission is primarily concerned with the development of digital intermediaries. Earlier, the digital framework has now enabled one asset management company and one life insurance to get licensed and an application for digital only non-life insurance is under process. Beyond a lower cost structure, digital intermediaries have wider outreach and may have compliance mechanisms built in.
