Special Terms and Conditions - PSX (Pakistan Stock Exchange)
- All transactions between the parties shall be subject to the Articles, Rules and Regulations of the Exchange, revised policies, Board Directions and new regulations to be framed in pursuance of Section 34 of the Securities & Exchange Ordinance, 1969. Moreover, all applicable provisions of the Securities & Exchange Ordinance, 1969 read with the Securities & Exchange Commission of Pakistan Act, 1997, Brokers and Agents Registration Rules, 2001, Securities and Exchange Rules 1971 and all directions/directives passed from time to time to regulate the trades between the parties and to regulate Brokers conduct and the Central Depository Companies of Pakistan Act, 1997, Rules framed there under and the National Clearing and Settlement System Regulations and any other law for the time being in force. ZSL shall ensure provisions of copies of all the above Laws, Rules and Regulations at his office for access to the Account Holder(s) during working hours.1(a). In case any dispute in connection with the trade or transaction between ZSL and the Account Holder is not settled amicably, either party may refer the same to arbitration in accordance with the provisions of General Regulations of the Exchange, which shall be binding on both the parties. The Account Holder hereby agrees that he would have no objection iii if his name and other relevant particulars are placed on Exchange’s database accessible by members of the Exchange if he fails or refuses to abide by or carryout any arbitration award passed against him in his dispute with the Broker.
- The amount deposited as security margin by the Account Holder(s) with ZSL shall only be used for the purposes of dealing in securities, such as trading and/or settlement of deliveries of securities on behalf of the Account Holder(s). ZSL shall not use such amounts for his own use.2(a). The credit amount of the Account Holder(s) shall be kept by ZSL in a separate bank account titled “Account Holder / Client Account” and shall not be used by ZSL for his own business.
- ZSL shall be authorized to act on the verbal instructions of the Account Holder(s). ZSL shall provide a written confirmation of the executed transactions as required under rule 4(4) of the Securities & Exchange Rules, 1971, and all such transactions recorded by ZSL in his books shall be conclusive and binding upon the Account Holder(s), which shall not be questioned by him/her/them, subject to clause 5 below. Or The Account Holder(s) shall give written instructions for the sale/purchase of securities to the Broker. The Account Holder(s) shall not give any verbal/oral instructions. ZSL shall provide a written confirmation of the executed transactions as required under rule 4(4) of the Securities & Exchange Rules, 1971, and all such transactions recorded by ZSL in his books shall be conclusive and binding upon the Account Holder(s), which shall not be questioned by him/her/them, subject to clause 5 below.
- ZSL shall provide the confirmation of the executed transactions to the __________________ (Name of Account Holder) at the above stated address by means of acceptable mode of communication or by hand subject to acknowledgment receipt as noted in clause 16.
- In case there are any error(s) in the daily confirmation statement, the Account Holder(s) shall report the same to ZSL within one-business day of the receipt of confirmation. In case the Account Holder(s) do not respond within one business day of the receipt of the said daily confirmation statement, the confirmation statement shall be deemed conclusively accepted by the Account Holder(s).
- In the event that the Account Holder(s) fail(s) to deposit additional cash or securities as margin within one business day of the margin call (in writing), ZSL shall have absolute discretion to and, without further notice to Account Holder(s), liquidate the Account Holder(s) outstanding positions, including the securities purchased and carried in such account, so that the margin is maintained at the required level.
- (a) ZSL shall be responsible to ensure delivery of CDC eligible securities in the CDC account of the Account Holder(s) subject to full payment by the Account Holder(s). In case of companies which are not on the CDS, ZSL shall ensure delivery of physical shares along with verified transfer deeds against payments, to the Account Holder(s). Further, ZSL shall be responsible for the payment of any credit cash balance available in the account of the Account Holder preferably in form of A/c Payee cross cheque only within 1 business day of the request of the Account Holder(s) (subject to the maintenance of the margin requirements).
(b) In the event of non-receipt of payment from the Account Holder on settlement day against securities bought on account of the Account Holder, ZSL may transfer such securities to his Collateral Account under intimation to the Exchange, after complying with the requirements as mentioned in the General Regulations of the Exchange.
- ZSL shall accept from the Account Holder(s) payments through “A/c Payee Only” crossed cheque, bank drafts, pay orders or other crossed banking instruments in case of amounts in excess of Rs. 25,000/-. Electronic transfer of funds to ZSL through banks would be regarded as good as cheque. ZSL shall be responsible to provide the receipt to the Account Holder(s) in the name of the Account Holder(s) duly signed by authorized agents/employee of ZSL and the Account Holder(s) shall be responsible to obtain the receipt thereof. In case of cash dealings, proper receipt will be taken and given to the Account Holder(s), specifically mentioning if payment is for margin or the purchase of securities. ZSL shall immediately deposit in its bank account all cash received in whole i.e. no payments shall be made from the cash received from clients. However, in exceptional circumstances, where it becomes necessary for Broker to accept cash in excess of Rs. 25,000/-, ZSL shall immediately report within one business day such instances with rationale thereof to the Exchange in accordance with the mechanism prescribed by the Exchange.
- ZSL shall make all the payments of Rs. 25,000/- and above, through crossed cheques / bank drafts / pay orders or any other crossed banking instruments showing payment of amount from their business bank account. Copies of these payment instruments including cheques, pay orders, demand drafts and online instructions shall be kept in record for a minimum period of five years.
- The Account Holder(s) shall have a right to obtain a copy of his/her or their ledger statement under official seal and signature of ZSL or his authorized representative on a periodic basis. In case of any discrepancy in the ledger statement, the Account Holder(s) shall inform ZSL within 1 day of receipt of the ledger statement to remove such discrepancy.
- The Account Holder(s) shall operate the account and execute transactions himself/herself/themselves unless the Account Holder(s) authorize Mr./Ms./ __________________ I. D. No. ___________ to transact in the account. All transactions executed by the authorized person shall be binding upon the Account Holder(s).
- For Joint Account Holder(s) only: We, the Account Holders shall operate the account jointly or severally and the instructions issued either jointly or severally shall be binding on us as well as upon ZSL in respect of the joint titled account. Or Our titled account shall be operated only by ____________ who shall be deemed as the authorized person for operating the joint account or issuing any instructions relating thereto.
- ZSL shall be responsible to append a list of his authorized agents/traders and designated employees, who can deal with the Account Holder(s), with this account opening form and a copy of both the opening form and the list will be provided to the Account Holder(s). Any change therein shall be intimated in writing to the Account Holder(s) with immediate effect.
- ZSL shall debit the account of the Account Holder(s) for the commission charges or any other charges in connection with the brokerage services rendered, which shall be clearly detailed in the ledger statement/daily confirmations.
- ZSL shall not disclose the information of the transactions of the Account Holders to any third party and shall maintain the confidentiality of this information. However, in case the Exchange or the Commission, as the case may be, requires any such information, ZSL shall be obliged to disclose the same for which the Account Holder(s) shall not raise any objection whatsoever.
- ZSL is a corporate TRE Certificate holder and if merged into another corporate TRE Certificate holder company and vice versa the agreement and conditions laid down herein above shall remain effective unless otherwise agreed by the parties.
- Acceptable mode of communication between the Account Holder(s) and ZSL shall be through letter (courier/registered post/fax/email ) or by hand subject to receipt/acknowledgement.
Fax: ____________________ E-mail: ____________________ Courier: ____________________
(A fee will be levied each posted mail or fax.)
by hand subject to receipt/acknowledgment. The onus of proving that the e-mail has been received by the recipient shall be on the sender sending the e-mail. Confirmation of orders to clients made through fax or e-mail will have a time record.
- All orders received telephonically and placed on KATS shall be supported by recording on dedicated telephonic lines, preferably connected with a computerized taping system so as the orders could possibly be sorted on UIN basis and made user friendly.
- In case of change of address or contact numbers of either party, the concerned party shall immediately notify the other party of the changes in writing.
- I/We, the Account Holder(s) acknowledge receipt of this account opening form (signed here by me/us in duplicate) along with the copies of all the annexure and I/we, the Account Holder(s) also undertake that I/we have understood all the above terms and conditions of this agreement which are acceptable to me/us. 21. I/We, the Account Holder(s) understand that the shares trading business carries risk and subject to the due diligence on part of ZSL I/we may incur losses for which I/we, the Account Holder(s) shall not hold ZSL responsible.
- On its part ZSL, will endeavor to purchase or sell the shares/securities within the limits of the price that may be notified by the Account Holder(s) to any Stock Exchange working in the country for the best interest of Account Holders) ZSL does not guarantee or ensure that the transaction will be materialized within such notified limits. In case Account Holder (3) notifies a limit for purchase/sale, ZSL will be entitled to deal at the limit. The Account Holder(s) shall have no objection. If ZSL executes its/his/her order, within desired limits, or negotiated trades within its House.
- Any and all moneys, securities or property belonging to the Account Holder(s) or in which the Account Holder(s) may have an interest held by ZSL or carried in any of Account Holder( s)’s account (either individually or jointly with others) shall be subject to a general lien for the discharge of all the Account Holders) debts and obligations to ZSL. ZSL is hereby authorized to sell and/or purchase any and all property in any such accounts without notice to satisfy such general lien. ZSL shall have the right to square up and transfer moneys, securities and other of the accounts of the Account Holders) whenever in the judgment of the authorized officers of ZSL the value of the security deposited by the Account Holder(s) for exposure purpose has so reduced that it cannot recover the loss which maybe suffered due to volatility of market and ZSL may be exposed to loss, unless the Account Holders) deposited further securities to protect ZSL.
- ZSL will maintain Account Holder(s) account in its hooks for all transactions of sale and purchase of shares and securities. ZSL will debit the Account Holder(s)’s account for the value of shares purchased by it/him her through ZSL and credit the Account Holder(s)’s account for the value of shares sold by it/him/her through ZSL. ZSL will debit the Account Holder(s)s account for all commissions, ZSL age and other charges that are normally applicable, including those otherwise fixed by the Karachi, Lahore and Islamabad Stock Exchanges (Guarantee) Limited.
- TELEPHONE MONITORING: ZSL may record telephone calls to .monitor the quality of service the Account Holders) receives and to verity securities transaction information.
- LIABILITY: ZSL shall not be responsible or liable for any error, omission or mistake appearing in the list of shares annexed to any bill or cost or for any consequences arising there from.
ZSL shall not be liable for any fluctuations in the market prices of the shares/securities purchased or sold on account of the Account Holders) for any reasons whatsoever and the net rates/prices of confirmation report/account statement of sale or purchase shall be considered as the concluded final rate/prices binding upon the parties. ZSL shall not be liable for any fraud, forgery, mis-declaration or any other act or omission on part of any constituent or TRE Certificate holder of Pakistan Stock Exchange and the Pakistan Stock Exchange or their respective clients and the shares/securities shall be deemed to have been purchased or sold at the risk and cost of the Account Holder(s) with no obligations an part of ZSL. In the event of failure or refusal to effect the delivery against any purchase contract by ZSL of the Exchange through whom ZSL may have purchased the shares/securities or refusal to accept delivery against any sale contract by any ZSL of the Exchange through whom ZSL may have sold the shares/securities, ZSL shall not be liable for the damages, cost or legal expenses which the Account Holder(s) may suffer or sustain and in such an event; the rules and regulations of the Exchange will prevail and be binding upon the Parties. ZSL shall not be liable for any losses or damages to the Account Holder(s) for any reason whatsoever, in respect of any actions done by ZSL or any other persons in pursuance of or in connection with this agreement.
- I/We, the Account Holder(s) acknowledge receipt of this account opening form (signed here by me/us in duplicate) along with the copies of all the annexure and I/We, the Account Holders) also undertake that I/we have understood all the above terms and conditions of this agreement which are acceptable to me/us.
- l/We, the Account Holder(s) understand that the shares trading business carries risk and subject to the due diligence on part of ZSL I/we may incur losses for which I/we, the Account Holder(s) shall not hold ZSL responsible.
- I/We, the account Holders) further confirm that all information given in this application is true and complete and hereby authorize ZSL to verify any information mentioned above.
Declaration of solvency & undertaking
The Account Holder hereby declares that:
- a. It has not applied to be adjudicated as an insolvent and that it has not suspended payment and that we have not compounded with our creditors.
- b. It is not un-discharged insolvent.
- c. It has not been declared defaulter in repayment of loan of a bank/financial institutions.
Main Applicant _____________ Joint Applicant 1 _______________ Joint Applicant 2 _______________ Joint Applicant 3 _______________
Zafar Securities (Pvt) Ltd.
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