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.
  • For more information, click 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 holders are required to apply for renewal of securities brokerage license by November 30 of every calendar year. The application must be submitted along with necessary documents to PSX Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi, at atleast 1 month before expiry of the license. Application format (Form C) and list of documents to be submitted are available 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, the renewed license is provided to PSX which is forwarded to the respective TREC holder.
  • For more information, click here

FEES:

  • A fee of Rs 50,000/- 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, based on this format.
  • The application is to be submitted with these documents and undertakings.
  • 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

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:

  • A transferable TREC holder intending to transfer their TRE Certificate are required to submit a written application, duly signed by both the transferor and transferee, to PSX at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi, requesting PSX to issue a TRE Certificate Transfer Application Form.
  • TRE Certificate Transfer Application Form is issued to the applicant concurrently by PSX.
  • The transferor and transferee will fill and sign the application form and submit it along with required documents to PSX within 60 days of its issuance.
  • Upon approval by the Chief Executive Officer of PSX, a Notice of transfer of TRE Certificate is issued to the applicant.
  • More information, specifically documentation requirements for TRE Certificate transfer, is listed in chapter 4 of the Rule Book of the Exchange.

PROCESS:

  • Under the Stock Exchanges (Corporatisation, Demutualisation and Integration) (Amendment) Act 2012, PSX is required to issue 15 TRE Certificates each year until 2025. A notice to that effect, under the said Act, is published in newspapers and also posted here.
  • The applicant(s) desiring to apply for Trading Rights Entitlement Certificate (TREC) are required to submit a signed application at requesting issuance of TRE Certificate Application Form. The application is to be submitted at Admin Block, Pakistan Stock Exchange Limited, Stock Exchange Road, Karachi.
  • PSX will issue TRE Certificate Application Form to the applicant concurrently.
  • Upon approval of the application by the Chief Executive Officer of PSX, a Certificate is issued to the respective applicant.
  • For more information, please refer to chapter 4 of the Rule Book of Exchange.

CONDITIONS:

  • The time period to submit the filled out and signed form, with the necessary documents, to PSX is 60 days from the date of issuance of the application form to the applicant.
  • The time period to approve or reject an application is 30 days from the date of submission of the Application to PSX.

FEES:

  • A fee of Rs. 2.5 million for issuance of new TRE Certificate and a non-refundable application processing fee of Rs. 100,000/- is required to be paid through Pay Order in favour of PSX along with the Application.

ELIGIBILITY CRITERIA:

  • The applicant must be a Public or a Private company, other than a Single Member Company, as defined in the Companies Ordinance, 1984 (XLVII of 1984).
  • The applicant must have a minimum issued and paid-up capital of Rs.50 million.
  • The Chief Executive of the applicant company must be a citizen of Pakistan and should not be on the board of any company whose principal activity is investing/ trading in securities market.
  • The directors/ sponsors/ substantial shareholders of the applicant have not held the office of the directors or have been sponsors/substantial shareholders in any company viz TRE Certificate Holder or a Member which had been declared defaulter or expelled by the Exchange or whose TRE Certificate has been cancelled/forfeited by the Exchange, prior to the date of demutualization. (Substantial shareholder is any shareholder having more than 10% shareholding)
  • At least two Directors of the applicant including the Chief Executive must have a minimum academic qualification of “Graduation” from a university duly recognized by the Higher Education Commission of Pakistan or foreign qualification of equivalent level and have experience of at least five years in the business of buying, selling or dealing in securities;
  • The applicant company must not be engaged in any business other than that of a Broker or other related business as approved by the Commission from time to time.
  • The applicant company must not be engaged in any business other than that of a Brokerage business or other related business as approved by the SECP from time to time.
  • An applicant company shall not be admitted as TRE Certificate Holder if any of their directors/sponsors/substantial shareholders:
    • Have been adjudged bankrupt or have been proved to be insolvent even though they may have obtained their final discharge;
    • Have compounded with their creditors for less than full discharge of debts;
    • Have been convicted of an offence involving a fraud or dishonesty;
    • Have been at any time expelled or declared a defaulter by a Stock Exchange/PMEX or it have been debarred from trading in securities by any regulatory authorities including SECP or any court of law.

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/-