Requirement & Guidelines for holding the Corporate Briefing Session (CBS)

The Stock Exchange is a place where shares of listed companies are bought and sold. Companies list themselves on the stock exchange to raise capital. Shares of companies are traded, after they are listed, through a process of Initial Public Offering (IPO) or Secondary Public Offering (SPO). The share purchase represents ownership of the shareholder in a company to the extent of amount contributed by the investor to the capital of that company.

Corporate Bonds (Term Finance Certificates - TFCs etc.) and Government Debt Securities - GDS (Treasury Bills etc.) are also listed and traded on the Stock Exchange. Bonds are listed by a company that wants to raise capital in return for fixed periodic payments as mark-up and the eventual return of principal to the investor. GDS are listed by the Government to raise capital whereby the securities give fixed periodic returns as profit with eventual return of principal to the investor.

A company floats its shares for the first time through an IPO in the share market. These shares can be purchased by filling and submitting the share subscription form along with the payment of subscription amount through cheque (or through any other instrument of payment recommended by the issuer company) at a branch of the designated bank(s). The shares are subscribed at a pre-designated price. In an SPO, shares are offered by a listed company by way of issuing new shares, called Right Shares, or through off-loading of more shares (held by directors and others) in the market. The share price is set on the stock exchange platform as the shares are bought and sold.

Pakistan Stock Exchange (PSX) has 558 listed companies distributed amongst 40 sectors. There are 7 Indices listed on PSX board. Part of the PSX ecosystem are the CDC (Central Depository Company) through which delivery of shares takes place, and NCCPL (National Clearing Company of Pakistan Limited) through which settlement of shares takes place.

Potential Investors are advised to contact a TREC (Trading Rights Entitlement Certificate) holder/ licensed brokerage firm for their account opening and trading on the Stock Exchange.

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• Primary market/ IPO – Dos: A (prospective) investor must read the Prospectus/ Abridged Prospectus issued against an IPO carefully and note the following:

  • Risk factors pertaining to the issue.
  • Financials of the issuer.
  • Object of the issue.
  • Outstanding litigations & defaults, if any.
  • Business overview.
  • Background of promoters.
  • Instructions before making application.

• Primary market/ IPO – Don’ts:

  • Do not fall prey to market rumours.
  • Do not go by any implicit/ explicit promise made by anyone.
  • Do not invest simply based on the bullish trend of the market industry/ issuer company.
  • Do not bank on the price of the shares of the issuer company going up in the short run.
  • Do not invest just because others are doing it also.
  • Do not invest just because the issuer company has a good reputation. Study the details behind the issue.

• Secondary Market– Dos:

  • Transact only through Stock Exchange.
  • Deal only through registered brokers/ TREC holders of PSX with valid license for brokerage issued by SECP.
  • Complete all account opening formalities properly
  • Read & properly understand the risk associated with investing in securities before investing.
  • Assess the risk-return profile of the investment as well as the liquidity & safety aspects before investing.
  • Invest based on sound reasoning, taking into account all publicly available information.

• Secondary Market – Don’ts:

  • Given the benefits of trading on the Stock Exchange, it is advisable to avoid off-market transactions.
  • Don’t deal with unregistered intermediaries.
  • Don’t fall prey to promises of unrealistic returns.
  • Don’t invest on the basis of hearsay & rumours; verify before investment.
  • Don’t forget to take note of risks involved in the investment.
  • If new to share trading, it is strongly recommended that (prospective) investor obtain proper professional investment advice before investing in shares.

Pakistan Stock Exchange has begun an initiative to develop awareness of public at large about the financial concepts, investment basics and financial planning. The objective is to ensure the general public is equipped with knowledge related to financial and retirement planning & basic concepts of investments, stock market investments and other investment related considerations.

Financial education enhances the consumers/investors understanding of financial products and concepts through information, instruction and/or objective advice. Simultaneously it develops the skills and confidence among investors/consumers to be able to gauge financial risks and opportunities so that they can make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being.

The Open Sessions aim to improve the learning curve and to create awareness about investment avenues. These sessions are meticulously planned by PSX team and are geared toward maximization of investment activity.

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VIS

PACRA

A Centralized Customers Protection Compensation Fund (CCPF), formerly known as Investor Protection Fund (IPF), has been established and operated in accordance with the Customers Compensation Fund (Establishment and Operations) Rules, 2017 and Centralized Customer Protection Compensation Fund Regulations, 2017 promulgated by the Securities and Exchange Commission of Pakistan.

The sole mandate of CCPF is to compensate customers of a defaulter stock-broker up to a maximum of PKR 500,000 per claimant whose claim has been admitted by the Pakistan Stock Exchange (PSX).

The Claim invitation process initiates upon declaration of the stock-broker as defaulter by PSX. A customer wishing to file a claim against the defaulter stock-broker can do so by contacting the Regulatory Affairs Division (RAD) of PSX. The ensuing process is as follows:

• The Default Committee is constituted by RAD comprising industry experts, senior management personnel of PSX and TREC Holders not exceeding one-third of total such committee members.
• A notice of default of a stock-broker is issued by PSX on its website informing the public about the declaration of a stock-broker as a defaulter.
• A public notice is issued on the same day on PSX website inviting the public to file claims against the defaulter stock-broker. Such notice is also published in at least two widely circulated newspapers of Pakistan in English & Urdu languages.
• The Default Committee dispatches the Investor’s Complaint/Claim Form (available on PSX website) at the registered address of each customer of the Defaulter available with CDC and /or NCCPL.
• To ensure in-depth verification of filed claims and to maintain transparency and independence, PSX engages an audit firm to verify the genuineness of claims of the aggrieved parties.
• The approved claims are settled from the funds made available from the disposal of assets of the defaulted stock-broker under custody with PSX. The claims still remaining unsatisfied are then paid from CCPF upto a maximum limit of PKR 500, 000 in the manner provided in Chapter 24 Chapter 24 of PSX Regulations.

The Default and Arbitration Wing at Pakistan Stock Exchange Limited [“PSX”] (formerly: Karachi Stock Exchange Limited)

The Pakistan Stock Exchange Limited (formerly: Karachi Stock Exchange Limited), being the frontline regulator, plays a proactive role in ensuring that investors’ interest remains protected. Securing the interest of small investors is of prime importance to the Pakistan Stock Exchange Limited (formerly: Karachi Stock Exchange Limited).

In order to keep a vigilant eye on investors’ issues and to provide a platform to the general public for voicing their concerns, Default and Arbitration Wing within Regulatory Affairs Department of Pakistan Stock Exchange Limited (formerly: Karachi Stock Exchange Limited) has been set up.

The Default and Arbitration Wing is responsible for ensuring that grievances/ complaints of the general public concerning investment and trading of securities are heard and redressed, in a quick and efficient manner. This Wing is also responsible for proposing disciplinary actions against defaulting brokers.

Since 2008, this Wing has been working under the supervision of General Manager/ Chief Compliance Officer and has recommended disciplinary actions such as, suspension /expulsion/ forfeiture of membership/ TRE Certificate of 14 Brokerage Houses of Pakistan Stock Exchange Limited (formerly: Karachi Stock Exchange Limited) and settled claims valuing Rs.2.6 billion transparently.

This Wing liaises with Securities and Exchange Commission of Pakistan (SECP), National Accountability Bureau (NAB), Federal Investigation Agency (FIA), Prime Minister’s Inspection Commission (PMIC), Federal and Provincial Ombudsman Offices in the matter of complaints lodged against the Member/ TRE Certificate Holders of the Exchange.

List of Permanent Arbitrators Panel

Panel of Senior Management staff of the Exchange

This includes senior members of PSX Management. One senior member is nominated by CRO in consultation with the Managing Director-PSX for constituting sub-panel of arbitrators.

Panel of Industry Experts

Panel of TRE Certificate Holders

List of Brokers failing to comply with the Awards/Orders of Arbitrators

Status Report of Investors’ Complaint

List of Delinquent Clients

At present there is no investor/complainant falling under the category of Delinquent Clients.

System Auditor Panel

Auditor Panel IBTS

Lodging a Complaint

Online Claim Registration Form

How fo fill E-Claim Form

Claim Form

General Instructions for complaint registration

A guide for investors - Lodging complaints against PSX Members

What is Stock Challenge

Stock Challenge is a virtual trading competition among the students of Karachi with an aim to provide the youth the awareness of Pakistan’s Capital Market’s structure and the Training of the Investment Activities. The competition is done through the PSX Virtual Trading App, available on Android and Desktop.

This program comprises of multiple sessions, where students will use Stock Challenge Application, developed by PSX to give real-time experience of investment in PSX. In addition to that, students will be provided with guidance through study materials, live webinar sessions, & chance to interact with selected brokerage houses & learn about investment basics, financial planning, and stock market investments. This program will help PSX gain trust of thousands of families & potential investors while also providing them valuable insights and learning about investment in the stock market. It will also provide the audience an opportunity to discuss matters of mutual concern with representatives of Brokerage houses & PSX.

During Stock Challenge, the participants will be provided with the PSX’s Official Virtual Trading Application and they will simulate the inactivity. It will also serve its participants with multiple seminars about the eco system of Pakistani Capital Market, other connected stakeholders and some other relevant information and trainings.

Who can take part in Stock Challenge Competition?

Anyone enrolled in School, College & University can register for the Stock Challenge Competition

How Can I Participate?

You can register via PSX Virtual Trading App, once the registration in complete you will receive the registration email.

Do check your junk email if you are already logged in to an account, just log on to app and start your own portfolio and trading.

Is there any educational value to the contests?

Of course! Everything we do is centered on education. The Stock Challenge gives continuous updates on our portfolio holdings and management. Our team is trying their best to give new investors an idea of what kinds of things to look for while maintaining a portfolio.

We also add educational articles, videos and more to help all of our participants learn via our social media page and corporate website.

During Stock Challenge, the participants will be provided with the PSX’s Official Virtual Trading Application and they will simulate the inactivity. It will also serve its participants with multiple seminars about the eco system of Pakistani Capital Market, other connected stakeholders and some other relevant information and trainings. 

TERMS AND CONDITIONS

Stock Challenge 2019

• To enter the Stock Challenge, Applicants must be 18 years old or over on 30th June 2019. Applicants must provide proof of age in the form of a CNIC or Passport copy.

• The Stock Challenge 2019 is for University students enrolled for Bachelors or Master Program.

• Use of a false name or address will result in disqualification. Incorrectly completed or misleading applications will be disqualified as well.

• Registration can be done via Virtual Trading App

• Registrations, other than the event participants are not allowed.

• Each individual is allowed only one portfolio in Stock Challenge competition.

• The Winners and Runners Up shall be determined via. The decision of the Judges will be final, and no correspondence will be entered into.

• A list of the available prizes will be announced during the competition. The Stock Challenge Team will have sole discretion on the final allocation of prizes.

• Prizes are not transferable to another individual.

• The Applicant should receive a confirmation email upon the successful submission of the Application Form. If no confirmation is received within 24 hours of submission of the application, the Applicant is advised to contact the Stock Challenge Team using the contact page on the PSX web site.

• We may ask winners to provide a photo ID upon claiming their prize as part of our auditing process.

• Trading can be done only during the trading hours only. However, students at their own risk can short sell.

How the winner will be decided?

Winner will be decided based on highest capital gain during the event and portfolio size. Top performers will be announced by the end of the competition. Furthermore, a winner from each renowned university will also be announced followed by two runner ups. Participants will also receive a participation certificate.

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