Circular No. 06 of 2023 Centralized Digital Onboarding Mechanism for All Asset Classes

# Securities and Exchange Commission of Pakistan
## Securities Market Division
### Policy, Regulation and Development Department

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No. SMD/SE/2(316)/2021  
Dated: April 19, 2023

## Circular no. 06 of 2023

### Subject: Centralized Digital Onboarding Mechanism for all Asset Classes

The Securities and Exchange Commission of Pakistan (SECP) in exercise of its powers conferred under Section 40B of the Securities and Exchange Commission of Pakistan Act, 1997 (SECP Act) and section 282B of the Companies Ordinance, 1984 is pleased to issue this circular applicable on specified SECP regulated entities i.e. Securities Brokers, Futures Brokers, Asset Management Companies & Insurance Companies and their distribution agents, Securities & Futures Advisors and Investment Advisors (collectively referred as specified regulated intermediaries), for digital onboarding of their customers.

In order to facilitate a uniform process for onboarding of customers, SECP, hereby allows Central Depository Company of Pakistan Limited (CDC) to provide a Centralized Gateway Portal (CGP) for onboarding of ‘individual’ resident customers by the specified regulated intermediaries. CDC, Pakistan Stock Exchange Limited (PSX) and National Clearing Company of Pakistan Limited (NCCPL) shall issue Joint Procedures which shall be followed by all specified regulated intermediaries.

The specified regulated intermediaries shall establish their connectivity with CGP and integrate their online account opening portals.

The specified regulated intermediaries shall share, and regularly update, the information and documents of individual resident customers with CGP in accordance with joint procedures, subject to the prior consent of respective customer, irrespective of whether the account has been opened through CGP or through other means.

The CGP may share / update customer’s information and documents with other market intermediaries, in accordance with joint procedures and subject to the consent of customer.

SECP hereby specifies the following simplified and standardized information and documents for onboarding Pakistani Resident Individual Customers of specified regulated intermediaries through CGP or through other means.

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NIC Building, Jinnah Avenue, Blue Area, Islamabad, Pakistan  
Tel: 92-51-9195174, Fax: 92-51-9100440

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# Securities and Exchange Commission of Pakistan
## Securities Market Division
### Policy, Regulation and Development Department

***

Following are standardized customer information fields for Normal / Sahulat Account / Insurance Products:

## (PART – A)
### (Standardized Customer Information Fields – Normal Account & Sahulat / Asaan Account / Insurance Products)

| Sr. no. | Description | Normal Account | Sahulat / Asaan Account | Mandatory / Optional |
|---------|-------------|----------------|-------------------------|----------------------|
| 1 | Full Name as per CNIC / SNIC, etc. | YES | YES | Mandatory |
| 2 | Father/ Spouse Name | YES | YES | -do- |
| 3 | CNIC/ SNIC Identification Number | YES | YES | -do- |
| 4 | Date of issuance and expiry | YES | YES | -do- |
| 5 | Date of Birth | YES | YES | -do- |
| 6 | Mother’s Maiden Name | YES | YES | -do- |
| 7 | Place of birth* | YES | NO | -do- |
| 8 | Gender | YES | YES | -do- |
| 9 | **Mobile Number registered in his/ her name** | YES | YES | -do- |
| 10 | Landline Office/Residential | YES | NO | Optional |
| 11 | **Email Address*** | YES | YES | Mandatory for Online |
| 12 | Current mailing address - City, Province & Country | YES | YES | Mandatory |
| 13 | Profession / Occupation / Source of Earnings/ Income | YES | YES | -do- |
| 14 | Details of Contact person* (if different from details of the Customer) | YES | YES | -do- |
| 15 | Permanent address - City, Province and Country* | YES | NO | -do- |
| 16 | Bank/ E-Wallet/ IBAN Number | YES | YES | -do- |
| 17 | Details of nominee/ next of kin | YES | YES | -do- |
| 18 | Marital Status* | YES | NO | -do- |
| 19 | Zakat Status* | YES | YES | Optional |
| 20 | Basis of Remittance* | YES | NO | Mandatory |
| 21 | Name of Employer/ Business along with details* | YES | YES | -do- |
| 22 | Gross income (annual) | YES | YES | -do- |
| 23 | Beneficial ownership of funds/controlling rights (if applicable), source of funds and other information uploaded/ provided digitally during the opening of account (Details provided, if different from the main applicant) * | YES | NO | -do- |
| 24 | * Point 7, 11, 14,15, 19,20,21 & 23 shall not be applicable in the case of Life insurance products which does not include any investment component (i.e. term insurance), Health Insurance products, Non-life Insurance products and micro insurance products; <br> ** Point 9 and 11 shall be optional in the case of onboarding of customer of insurance products mentioned above by opening conventional account; | | | |

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NIC Building, Jinnah Avenue, Blue Area, Islamabad, Pakistan  
Tel: 92-51-9195174, Fax: 92-51-9100440

# Securities and Exchange Commission of Pakistan
## Securities Market Division
### Policy, Regulation and Development Department

***

## (PART – B)
### (Standardized Documents for Account Opening for all asset classes)

| S. No. | Documents |
|--------|-----------|
| 1 | Copy of identification document i.e. CNIC, SNIC, etc. * |
| 2 | Proof of business/work and source of income/funds of the customer, etc. * |
| 3 | Zakat Declaration In case of Non-Muslim / non-deduction of Zakat, relevant Declaration on prescribed format or an affidavit is required |
| 4 | Signature (wet/ electronic/ digital) |

* Not required in case of Sahulat / Asaan Account / Insurance Products

## (PART – C)
### (Sector Specific Customer Information and Documentation Fields)

| S. No. | Specific Information | Brokers | AMCs | Insurance |
|--------|----------------------|---------|------|-----------|
| 1. | Authority to operate account | Optional | Optional | NA |
| 2. | Authorization (In case title of mobile number does not match) | Optional | Optional | NA |
| 3. | Authorization to receive account statement through email | NA | Optional | NA |
| 4. | Details of payer if different from the life insured | NA | NA | Optional |

Specified regulated intermediaries shall ensure compliance with all provisions of AML Act, 2010 and rules, regulations and directives etc., issued thereunder including SECP (AML/CFT) Regulations, 2020 from time to time.

In order to improve efficiency in opening of account of resident individual customers; all specified regulated intermediaries shall review the application and respond back within a maximum turnaround time (TAT) of three (03) working days to either accept the application or to reject or convey discrepancy in the application form/information/documents.

The Circular No. 26 of 2021 dated October, 7, 2021 issued under section 282B of the Companies Ordinance, 1984, shall stand modified in case of individual resident customers for opening online/digital accounts either directly with AMCs or through any digital distribution platforms. The requirements stipulated in Circular No. 32 of 2021 shall remain the same.

The specified regulated intermediaries shall align their account opening forms and integrate/ establish connectivity of their online account opening portals with CGP in compliance with the requirements of this circular within three months or such extended time as may be specified by the SECP.

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**(Abdul Rehman Warraich)**  
Commissioner  
Securities Market Division

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NIC Building, Jinnah Avenue, Blue Area, Islamabad, Pakistan  
Tel: 92-51-9195174, Fax: 92-51-9100440