Guidelines Issued for Minor Trading Accounts in Capital Markets

Islamabad: The Pakistan Stock Exchange (PSX), in partnership with key financial bodies, has released comprehensive guidelines for opening trading accounts for minors under 18. This initiative, developed alongside the National Clearing Company of Pakistan Limited (NCCPL) and the Central Depository Company of Pakistan Limited (CDC), comes under the guidance of the Securities and Exchange Commission of Pakistan (SECP).

This effort represents a critical step in enhancing investor awareness and financial inclusion within Pakistan. By promoting a culture of saving and investment among the youth, the guidelines aim to encourage early participation in the capital markets. The initiative seeks to instill financial discipline and provide minors with access to formal investment avenues.

The guidelines detail the procedures, modalities, and terms for creating and operating minor accounts in the capital markets. These accounts can be managed by natural or court-appointed guardians, ensuring both accessibility and adherence to compliance and operational safeguards. The guidelines also cover the transition to regular trading accounts when minors reach 18, addressing tax implications on inventory transfers.

The introduction of these guidelines represents a significant move toward increasing investor participation and cultivating a financially literate future generation in Pakistan.

For more information, the detailed guidelines are available on the PSX website.