Opening trading accounts for minors: PSX, NCCPL and CDC issue guidelines

ISLAMABAD: The Pakistan Stock Exchange (PSX), in collaboration with the National Clearing Company of Pakistan Limited (NCCPL) and the Central Depository Company of Pakistan Limited (CDC), has issued guidelines for opening trading accounts for minors under the age of 18. This initiative was developed under the guidance of the Securities and Exchange Commission of Pakistan (SECP).

This initiative marks a significant milestone in promoting investor awareness and financial inclusion. It aims to foster a culture of saving and investment among the next generation in Pakistan, enabling minors’ early participation in the capital markets, instilling financial discipline, and providing access to formal investment avenues.

The guidelines provide a clear process, modalities, and terms & conditions for opening and operating minor accounts in the capital markets through natural or court-appointed guardians. The process ensures accessibility while maintaining robust compliance and operational safeguards. Furthermore, the guidelines outline the process for transitioning to a regular trading account upon turning 18, including the tax impact applicable on the transfer of inventory.

These guidelines are an important leap toward broadening investor participation and building a financially aware future generation.

The detailed guidelines can be accessed on the PSX website.

Copyright Business Recorder, 2025