Roshan Digital Account is a breakthrough initiative of the State Bank of Pakistan providing a unique opportunity to our Overseas/Non-Resident Pakistanis (NRPs) to digitally open a bank account in any of participating back within 48 hours without submitting any physical forms and documents.
Utilities & Benefits of Roshan Digital Account:
The Roshan Digital Account (RDA) fully integrates the Pakistani diaspora with Pakistan’s banking and payment system by allowing them utilizing a full range of banking products and investment options. Some of the key benefits of RDA are:
For further details and benefits of RDA, please click here.
Besides a wide range of utilities and benefits of the Roshan Digital Account, one of the most unprecedented advantages of the RDA is the Stock Market Investment option, through which an Overseas/ Non-Resident Pakistani or any Pakistani having declared assets outside Pakistan can now invest in the shares listed at the Pakistan Stock Exchange, without going into any complex Stocks Trading account opening mechanism. All you need to have is a Pak Rupees Roshan Digital Account with any of the following Participating Banks integrated with the Central Depositary Company of Pakistan Limited (CDC) for providing Stocks Investments facility:
For Conventional Trading (Across the board; in all 530 plus companies):
1. Bank Alfalah
2. United Bank
3. Habib Bank
4. MCB Bank
5. Samba Bank
6. Habib Metro Bank, (In Process)
For Sharia Compliant Trading (in 210 plus companies considered to be sharia compliant)*:
7. Meezan Bank
8. Faysal Bank
9. Dubai Islamic Bank (Pakistan)
* Some Key Restraints in Sharia Compliant Trading: All Roshan Digital Accounts being processed through Meezan, Faysal and Dubai Islamic Bank would only be allowed Sharia Compliant Trading;
i. Can only trade in a total of 209 companies, currently being considered as Sharia Compliant, out of a total 530 plus companies listed at the PSX.
ii. Cannot day trade or sell any stock even on the very next day of purchasing i.e. before it is delivered into your CDC account on T+2 settlement mechanism.
iii. Cannot trade in Right Shares (being considered as Non-Compliant by nature)
iv. Strictly cash based and any kind of leveraged trading is not allowed except sharia compliant financing only.
Some Key Benefits and Important Points to Know:
i. The Stocks Trading option is only available in PKR Roshan Digital Bank Accounts.
ii. The facility to repatriate your funds back to your country of stay is only available in the RDA account.
iii. Zakat is exempted on dividends while Withholding Tax on dividends and Capital Gain Tax on RDA to be taxed at the minimum rate (15%) of those who submit their annual tax returns.
iv. All book keeping, custody of funds/securities, and settlement obligations of the stocks trading account through RDA are undertaken by the CDC and the trading facility is extended by Optimus Capital Management Pvt. Limited through our online applications synced with the CDC.
v. An RDA account can only be funded through remittances from abroad from the very same bank account through which it will be opened and repatriation of funds through the same bank account would also be possible. It can never be funded through any other source, bank account either local or even a Roshan Digital.
(Digital processing through banks online portals)
Stocks trading account opening was never so easy, it has become for our overseas Pakistani Community with the introduction of RDA.
Roshan Digital Account (RDA) is a breakthrough initiative of the State Bank of Pakistan (SBP) and facilitated by all relevant stakeholders. The RDA enables Non Resident Pakistanis (NRPs) to open their bank accounts in Pakistan without being physically present in Pakistan and without submitting physical forms/documents via courier. The entire process is digital and requires only internet access.
RDA is part of a larger financial inclusion strategy specifically focusing on the inclusion of the Pakistani expat community allowing them to benefit from the opportunities in various asset classes through ease of access and facilitating investments. Moreover, RDA is an integrated channel through which funds can be remitted, invested and repatriated to and from the country of their residence, without facing complex procedures.
Roshan Digital Accounts can be opened and maintained by any non-resident Pakistani individual having a valid proof of residence outside Pakistan and other required documents as described below. Similarly, any Foreign Nationals holding a Pakistan Origin Card are also eligible to apply. Furthermore, Resident Pakistanis, who have declared assets outside the country can also open an RDA account.
Following documents are required to open an RDA with any of the participating banks:
The following commercial banks are offering this facility:
* Although SCB and Bank Al-Habib are providing RDA Account services but unlike all other participating banks, they have not opted for CDC Custody model for the Equity Investment option.
** The above Islamic Banks are only providing Sharia Compliant Stocks Trading Facility
Besides other types of banking services being offered by different banks, there are two basic types of Roshan Digital Accounts:
* Only Sharia Compliant Stocks Trading facility would be available in Islamic/Sharia Compliant type.
Roshan Digital Accounts are being offered in two different kinds of currencies:
* Stock Market Investments/Trading facility is only available in the Pak Rupees RDA
** Provision of Foreign Currency RDA account facility varies from bank to bank
An existing account held with any Pakistani bank or their offshore entity cannot be converted to a Roshan Digital Account. No existing bank account can be converted or linked with an RDA.
No funds can be deposited into the Roshan Digital Bank Account from within Pakistan except the accepted channels as discussed below. (e.g. CDC in case of Equity Investment option)
The RDA account can only be funded through any offshore bank account (other than any bank account in Pakistan) which has to be in the same account holder’s name. However, repatriation from an RDA can only be done to a designated offshore bank account as specified at the time of RDA opening.
Yes, you may withdraw or transfer any amount to any bank account in Pakistan from your Roshan Digital Bank Account as per your choosing. However once those funds have been transferred or withdrawn locally the same cannot not be redeposited back into your Roshan Digital Bank Account.
Yes, anyone who has opened or is currently maintaining an RDA with any participating bank, provided that the bank is integrated with the Central Depositary Company of Pakistan (CDC) will have the opportunity to invest and trade stocks at the Pakistan Stock Exchange through the selected brokerage house. The process is extremely simple without the requirement of any additional forms or resubmission of any documents. The documents provided at the time of opening an RDA will suffice for opening a trading account with a selected broker.
Central Depository Company (CDC) is the Ultimate Custodian of the Pakistan Capital Market. Established as a securities depository, CDC is the sole entity handling the electronic (paperless) settlement of transactions carried out at the Pakistan Stock Exchange.
CDC has a very pivotal role in the provision of Equity Investment option to the RDA accountholders as except for a couple of banks, all other participating banks and more than 50 stocks brokerage firms (providing online trading facility) including Optimus Capital Management Pvt. Limited., are integrated with CDC for this very purpose. CDC does not only act as a hub between all the integrated banks and brokerage firms but is also responsible for the custody (funds/securities), book keeping, settlement obligations of the stock market transactions carried out by the RDA accountholders. You may view detailed information about the procedures, guidelines and all other relevant information at https://www.cdcpakistan.com/businesses/roshan-digital-account/
Investor Account Services (IAS) allows retail investors to directly open and maintain accounts with CDC in the Central Depository System for secure and safe custody of securities. Investors have direct access to their securities through the Investor Account, which is maintained by CDC and operated on the instructions of investors. For the Equity Investment option, it is mandatory to open an IAS Account at CDC. You may view further details about IAS account and related services at https://www.cdcpakistan.com/businesses/investor-account-services/
Once you have opened an RDA account with any of the participating banks and received the login credentials from your bank, all you need is to login into your online bank account through the provided link, select stock/capital market investment or CDC account opening option and provide your consent to share your details/documents with CDC. Following on please select your preferred Brokerage House and Agree to the Disclaimer/Terms and Conditions for investing in Pakistan Stock Exchange.
If you already have an RDA Bank account and you initiate a shares trading account request through your selected bank, it usually takes two to three working days to complete the account opening procedure both at the CDC as well as with the selected broker.
As soon as your account opening procedure will be completed, you will receive a Login Credentials email from your selected broker and in this instance from Optimus Capital Management Pvt Limited and ultimately from the CDC (firstname.lastname@example.org) on the specified email address provided by you when opening an RDA bank account.
Yes, Stock Trading account through RDA is initiated through any of the participating banks as compared to the Normal Trading account where investor is required to directly open the account with a brokerage house of their choice along with a mandatory requirement of an active PKR Bank account other than an RDA Bank Account.
Apart from the account opening procedure, the main difference between a Normal Shares Trading Account and the one opened through a Roshan Digital Account is that the custody (funds/securities), book keeping, settlement obligations and trade execution (infact every single function) of a normal account is directly undertaken by the respective broker while custody, book keeping and settlement obligations of an account opened through the RDA are undertaken by the CDC except for only trading platform and trade executions are carried out through the selected broker.
No existing stock trading or CDC account can be converted or linked with a Roshan Digital Bank Account.
No shares available in any of your existing trading or CDC account can be transferred to a newly opened shares trading/CDC account via the Roshan Digital Platform.
You may transfer funds to your shares trading /CDC account opened through RDA by logging into the web portal of your selected bank and transfer the desired amount to the designated bank account of CDC through the provided CDC Funds Transfer option in your bank account portal.
The RDA is a designated account with pre-defined channels; as a result you cannot deposit or withdraw funds to/from your CDC IAS account opened via RDA, through any other bank account. You may only transfer funds from the very same RDA bank account through which you have opened your shares CDC IAS account.
Funds are generally credited into your CDC IAS account and the same also gets reflected into your shares trading account within two working hours after you have made the transfer from your RDA bank account and you may immediately utilize those funds for executing your shares purchase transactions.
No, there are no deductions made on account opening NOR are you subject to any maintenance charges either at the CDC or the brokers end. However the CDC does withhold PKR 5,000/- from your initial deposit for the purpose of paying brokerage commissions, CDC charges and relevant taxes; the remaining amount is reflected in your shares trading account.
Since all the funds as well as shares of RDA account holders are being kept by the CDC, RDA account holders can withdraw their funds by placing a Cash Withdrawal Request (available in the DSS link) after logging into their CDC IAS Account via https://www.cdcaccess.com.pk/ through their CDC Relationship ID and Password provided by CDC at the time of account opening.
CDC usually transfers the funds back to the RDA bank account within two working days after the placement of cash withdrawal request but in case of unsettled amount being requested, it may take a couple of more days.
Yes you can participate in any IPO or Book Building and also subscribe Right Shares through your CDC IAS account opened through RDA but there are certain procedures and stipulated dates for each case, which need to be followed.
Sharia compliant trading is governed by the rules set out by the Steering Committee of the Government of Pakistan for development of Islamic banking and finance. The Sharia Compliant Stocks are selected on the basis of Shariah Screening Criteria and Technical filters, details can be viewed at PSX-KMI All Share Index Brochure.
There are more than 530 companies listed at the PSX, out of which around 250 companies are considered as Sharia Compliant. So anyone opting for Sharia Compliant Trading would be allowed trading in those Sharia Compliant stocks only. Similarly, day trading facility is not available in Sharia Compliant Trading i.e. you cannot sell any stock until it gets delivered in your CDC account, as shares are delivered in your CDC account after two working days against purchase transactions. Trading of Right shares is also restricted in Sharia Compliant Trading.