Brokerage Firms

PROCESS:

• Subsequent to receipt of TRE Certificate, a TREC holder must apply for a securities license from Securities & Exchange Commission of Pakistan(SECP) by submitting an application along with necessary documents to PSX at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi. Fit & Proper Criteria for sponsors/ management of securities brokers, Application format (Form A), information for filling out the application and list of documents to be submitted, are as under here.
• Upon scrutiny of the application at PSX end, it is sent to SECP for scrutiny and approval.
• If the application is approved by SECP, a license is provided to PSX which is forwarded to the respective TREC holder by PSX.
• Undertaking / Affidavit here.
• Checklist for Brokers here.
• Fit and Proper Criteria under Annexure-B here.
• Information and Documents to be provided along-with application here.
• Schedule of Fees here.

CONDITIONS:

• The securities brokerage license is valid for a period of 1 year.

FEES:

• A fee of Rs 100,000/- is to be deposited against the submission of the application for issuance of license from SECP.

PROCESS:

• TREC holder/ brokerage firm is required to submit a request/ application for change of Chief Executive Officers (CEO)/ Board of Directors to PSX at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi along with documents & requirements listed here. Fit & Proper Criteria, Application format, Undertakings/ Affidavits relevant to the request are available here .
• Upon approval of the application by the Chief Executive Officer of PSX, a No Objection Certificate (NOC) for Change of CEO/Directors is issued to the applicant company.
• In case of change of Sponsor, prior approval is obtained from SECP, and the same is required to be submitted to PSX along with undertakings, available here for amendment in PSX record.

FEES:

• A cheque of Rs. 150,000/- towards payment of fee is to be submitted for change of majority shareholding of a corporate brokerage house due to change of management.
• No fees is charged for change of CEO/ Directors.

PROCESS:

• A brokerage firm may open its office(s)/ branch office(s) within and outside the premises of the Exchange by submitting an application at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi.
• Upon approval of the application, a Notice is issued by PSX for Office/ Branch registration.
• For further information, specifically application criteria for Office/ Branch Registration, please see chapter 22 of Rule Book of the Exchange
• For further information, Please see chapter 22 pf PSX Regulation; click here to download Checklist/Documents

FEES:

The fee for Office/Branch registration is Rs.5,000/-

In case of change of company name, prior approval is obtained from SECP and the same is submitted to PSX (for amendment in record) at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi, as per these criteria & documents required.

PROCESS:

• TREC holder is required to submit an application for transfer of telephone booth, are available here.
• PSX will issue an application form for the said transfer concurrently.
• The filled & signed application form may be submitted at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi.
• Upon approval of the application by the Chief Executive Officer of PSX, a Notice is issued for transfer of telephone booth to the applicant.

CONDITIONS:

• Only TREC holders can request transfer of telephone booth.

FEES:

• Telephone booth transfer fees Rs 2500/-
• Telephone booth license fees Rs 1000/ per month

PROCESS:

• To receive trading hall entry pass, application is required be submitted to PSX at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi as per this format:
• Upon approval, a trading hall entry pass is issued to the applicant.

CONDITIONS:

• A maximum of 10 entry passes are allowed per TREC holder

PROCESS:

• Banks & TRE Certificate holders can submit an application to PSX at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi, for transfer of rooms on lease & license basis.
• PSX will issue application forms to the applicant/ transferor concurrently as per these formats (to be filled & signed by transferor & transferee).
• The filled and signed application is to be submitted by the applicant/ transferor to PSX within 60 days from the date of issuance of the form.
• Subsequent to scrutiny of the application, PSX will issue a notice for a period of 7 days for any claim to be received from any party, against the said transfer of room by the applicant/ transferor.
• If no claim is received by PSX within the 7 day period and upon approval of the application by the Chief Executive Officer of PSX, a Notice is issued for transfer of room to the applicant/ transferor.

CONDITIONS:

• There shall be no restriction on Banks or TREC holders for transfer of rooms on any floor.
• Room transfer application of all non-TREC Holders, whose businesses do not violate the decorum and environment of the building, shall be subject to PSX Board’s approval.

FEES:

• Rooms transfer fees: For TREC holders: Rs 25,000/-
  For Non-TREC holders: Rs 600,000/-
• License fees for rooms: For TREC holders: Rs 2,000/- per month
  For Non-TREC holders: Rs 8,000/- per month

PROCESS:

• Banks/ TREC holders/ individuals can submit an application for mortgage of leased room in favour of bank/ financial institution at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi, as per this Format.
• Upon approval of the application, a No Objection Certificate (NOC) is provided to the applicant for mortgage of leased room.
• PSX will issue TRE Certificate Application Form to the applicant concurrently.

FEES:

• The fees for mortgage of leased room is: For TREC holders: Rs 5,000/- For Non-TREC holders: Rs 10,000/-

PROCESS:

• Banks/ TREC holders can submit an application and undertaking for transfer of leased room at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi, as per this Format.
• Upon approval of the application, a No Objection Certificate (NOC) is provided to the applicant for said transfer of leased room.

FEES:

• The fees for the transfer of leased room is: For TREC holders: Rs 50,000/- For Non-TREC holders: Rs 100,000/-

• Annexures
• List of Documents to be Submitted
• For further information, please see chapter 4.9 of PSX Rule Book

Marketing Roadmap for Brokerage Firms

Broker Back Office System - Basic Guidelines

Eligibility Criteria for Broker Back Office System Vendors

List of Eligible Broker Back Office System Vendor(s)

• Provisional list of Eligible Vendors*

Eligible Information Security Vendors

Minimum Information Security Standards for compliance by the Securities Brokers

Relevant PSX Notices

Panel of Auditors –System Audit

Panel of Auditors – IBTS Audit

PROCESS:

Securities Broker may open/ designate Center subject to prior intimation to the Exchange on letterhead of the Securities Broker, duly signed by the authorized signatories along with following information and receipt of confirmation from Exchange for submission of all required information:

• An undertaking on letterhead of the Securities Broker, as per specimen Annexure-A which is available in Chapter 22A of PSX Regulation.
• Format Attached
• List of employees/ Designated Employees to be deployed at the Center as per attached format. Annexure-B
• Copy of agreement with Designated Entity, clearly defining the roles and responsibilities of each party and clearly spelling out non-permissible activities;
• For further information, please see chapter 22A of Rule Book of the Exchange

Download

PROCESS:

The Securities Broker may relocate its existing Office/Branch Office within nearby vicinity of 15 KM provided the Broker shall:

• Report the same to the Exchange 15 days prior to shifting Checklist Document.
• Inform its clients in writing about new address.
• Visibly display the information for shifting of Branch shall be at the respective Office/Branch Office at least15 days prior to its relocation.
• For further information, please see chapter 22.9 of Rule Book of the Exchange

PROCESS:

In case of permanent closure of any Branch Office, the Securities Broker shall:

• Give 90 days prior notice to the Exchange and all its clients for closure of any of its Office/Branch Office along with the specific reason thereof
• Visibly display notice for closure of its Office/Branch Office at the respective location at least 30 days prior to closure of such Office/Branch Office.
• publish of closure at least 30 days prior to closure of Office/Branch Office in two (English and Urdu) newspapers having wide circulation in the province(s) where its Head Office, Main Office and branch Office(s) is situated Format attached (Annex-I)
• submit copy of the published notices of closure to Exchange and the Commission within two days of their publication.
• inform its clients in writing about future correspondence address/mechanism, names and contact details of relevant contact person(s) and transfer of their relevant record to their Head Office or nearest Office/Branch Office as deemed appropriate.
• submit a final statement at least 15 days prior to the closure of Office/Branch Office to the Exchange.
• For further information, please see chapter 22.9 of Rule Book of the Exchange

PSX REGULATION NO. 22.4.

ELIGIBILITY FOR THE PERSON TO BE APPOINTED AS BRANCH HEAD OF THE SECURITIES BROKER’S OFFICE/BRANCH OFFICE:

The person to be appointed as Branch Head of the Office/Branch Office shall fulfill the following conditions:

• he is not less than 21 years of age.
• he has not been convicted of any offense, involving fraud or breach of trust.
• he has passed at least graduation examination and possesses at least three years’ experience in the capital markets or one year’s experience as trader with a Securities Broker.
• he has not been adjudicated as insolvent or has suspended payments or has compounded with his creditors.
• NOC from his previous employer.

Provided that the above conditions shall not be applicable on the Chief Executive Officer of the Broker supervising the Securities Broker’s Main Office.

For further information, please see chapter 22 of PSX Regulation; click here to download Checklist/Documents