Roshan Equity Investment launched to attract non-resident investors

KARACHI: The capital market entities, banks, and the State Bank of Pakistan (SBP) marked launch of Roshan Equity Investment (REI), a product that allows non-resident Pakistanis under the umbrella of Roshan Digital Account (RDA) invest in Pakistan’s stock market.

The facility was launched in a gong ceremony held at Pakistan Stock Exchange (PSX) on Thursday.

The REI account allows investors a benefit of investing in the local stock market just as they are able to avail the facilities of car financing, house financing and purchase of government bonds through their RDAs.

The gong ceremony was held at the trading hall of the PSX whereby the gong was struck by the Chief Guest, SBP Governor Jameel Ahmad. The PSX chairperson Dr Shamshad Akhtar, CEO of CDC Badiuddin Akber, CEO of NCCPL, Muhammad Lukman, CEOs of RDA offering banks and major securities brokers along with the board of directors and senior management of the participating organisations, including COO PSX Nadir Rahman, were key participants at the occasion.

He stated that RDA had provided an opportunity for non-resident Pakistanis to connect with the domestic banking system and provedSpeaking at the occasion, Jameel Ahmad said the launch of REI under the banner of the State Bank’s RDA was an important milestone in developing the country’s capital market. instrumental in attracting foreign exchange inflows of over $5.2 billion due to its ease of operability, fund repatriation, and return offered on investment.

Governor SBP highlighted the importance of enhanced collaboration among all stakeholders to plan and work towards the development of deeper, more efficient, and more inclusive capital markets in the country.

Shamshad Akhtar termed the facility a revolutionary step forward enabling overseas Pakistanis to build their wealth and contribute to the country’s economy. “The Roshan Equity Investment facility for Roshan Digital Account holders is an excellent opportunity to benefit not only the non-resident Pakistanis themselves but also the economy of Pakistan by way of routing the much-needed foreign exchange into the country.”

SECP chairman Aamir Khan, through a video message, said enabling environment created through the digital account opening in the stock market and mutual funds, the e-IPO process and linkage with Roshan Digital Account led to an 11 percent and 6 percent growth in the investor base during the FY2021 and FY2022 respectively.

Central Depository Company (CDC) of Pakistan Limited CEO Badiuddin Akber said they were currently providing complete digital settlement services to more than 10,000 RDA holders around the globe.