In a landmark move aimed at increasing retail investor participation, the Pakistan Stock Exchange (PSX) has announced that individuals under the age of 18 can now open accounts and buy shares in the stock market.
According to a circular issued by the PSX to all brokerage houses, minors will be allowed to participate in trading activities under the guidance and supervision of their legal guardians.
New framework developed with SECP, NCCPL, CDC
The new rules were introduced after extensive consultation between the National Clearing Company of Pakistan Limited (NCCPL), the Central Depository Company (CDC), and the Securities and Exchange Commission of Pakistan (SECP).
As per the circular, brokerage houses are required to ensure full compliance with all regulatory and verification requirements while opening accounts for minors. The PSX has also shared a draft framework of rules with securities brokers to streamline the process and ensure transparency.
Guardian-led trading for minors
Under the new regulations, minors will be able to buy and sell shares through their guardian’s consent. Guardians will be responsible for managing the account, approving transactions, and ensuring compliance with SECP and PSX guidelines.
