Roshan Digital Account – A Way to Invest in Stock Market for Overseas Pakistanis
The Central Depository Company (CDC) has told the steps for overseas Pakistanis to invest in the Stock market via Roshan Digital Account (RDA). So, now Overseas Pakistanis willing to invest in Pakistan through Pakistan Stock Exchange can easily invest through RDA online account. As per the CDC, overseas Pakistanis will follow the following steps to invest through Roshan Digital Account.
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Opening of an Account
Firstly, overseas Pakistanis will approach any authentic Bank’s online portal and submit applications. Furthermore, the applicant will provide information and soft copies of the documents to the Bank’s portal. So, Bank will do its own KYC and will let non-resident Pakistani (NRP) know about the account status within 48 hours.
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Furthermore, upon the successful opening of the account, Bank will offer the following two investment packages:
- Naya Pakistan Certificates
- Stock Exchange Investment (Equities, Debt)
So, if NRP opts to invest through Stock Exchange, Bank will seek the consent of NRP to allow the bank to share information and documents with CDC. Additionally, the information will be shared with many other stock market entities. Later on, Bank will ask NRP to accept the terms and conditions and select the brokerage house. So, after these steps, the bank will transfer the details and documents of the NRP to CDC through API. This information includes documents, information, and IBAN of the NRP. CDC will inform NRP via mail regarding documents receiving and will forward the case to the respective brokerage house and to NCCPL for the opening of UIN.
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Subsequently, the brokerage house will perform its own duty and will open the trading account within 24 hours. So, the brokerage house will intimate NRP and CDC regarding the account status and online trading portal. However, the broker may also reject the NRP’s request for account opening. Furthermore, if the broker does not respond within 24 hours or rejects the application, the CDC will request for the future course of action. The broker may ask for more details and documents for Enhanced Due Diligence (EDD).
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Option 1: Custodial Services (SCRA Model)
The bank is liable to clearly mention on portal or application the following two investment options.
- Custodial Services Through Bank
- Custodial Service Through CDC
So, if NRP selects option 1, custodial services through the bank, the bank will transfer the data to CDC through API. So, upon receiving data from the bank, the CDC will inform the NRP.
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Option 2: Direct Trading Through CDC DSS
If NRP gees for this option, CDC will open an IAS account in parallel to account with the broker. Furthermore, CDC will intimate NRP and broker regarding the IAS account details. However, CDC will only be responsible for the clearing and settlement of trades through the respective broker.
Click Here to Open You Roshan Digital Account.