REGULATIONS GOVERNING ISE MEMBERS OFFICE(S)/BRANCH OFFICE(S) FOR CONDUCTING THE BUSINESS AND TRADING OF SHARES AND SECURITIES WITHIN/OUTSIDE BUILDING                                Back to Rules & Regulations Main

 REGULATIONS GOVERNING ISE MEMBERS OFFICE(S)/BRANCH OFFICE(S) FOR CONDUCTING THE BUSINESS AND TRADING OF SHARES AND SECURITIES WITHIN/OUTSIDE BUILDING

PREAMBLE:

Whereas in order to promote equity, the Members of the Islamabad Stock Exchange (Guarantee) Limited (ISE) are opening their Office(s)/Branch Office(s) within or outside the ISE premises.

And whereas in order to maintain a smooth process for opening of the Office(s)/Branch Office(s) and ensure full compliance of the Rules and Regulations of the Exchange as well as the protection of investors dealing through such Office(s)/Branch Office(s) as well as matter arising out of or connected therewith, it is necessary to frame necessary Regulations to meet the underlined objectives.

Now therefore, in exercise of the powers vested under the Rules and Regulations, the Board of Directors of the Exchange with the prior approval of Securities & Exchange Commission of Pakistan (SECP) as required under Section 34(1) of Securities & Exchange Ordinance, 1969 makes these Regulations which shall be deemed to have come into force from the date of publication of these Regulations in the official Gazatte.

1.                 SHORT TITLE 

These Regulations shall be called “Regulations” Governing ISE Members Office(s)/Branch Office(s) for conducting the business and trading of shares and securities/within and outside the Exchange.

2.         APPLICABILITY

These Regulations shall apply to all those Members of the Islamabad Stock Exchange (Guarantee) Limited who open their Office(s)/Branch Office(s).

3.         DEFINITIONS

In these Regulations, unless, there is anything repugnant in the subject or context:

(i)                 “Exchange means the Islamabad Stock Exchange (Guarantee) Limited;

(ii)              “Member” means a “Member of the Islamabad Stock Exchange (Guarantee) Limited”.

 (iii)            “Office(s) or Branch Office(s)” means “ an Office/Branch/Shop opened and maintained by a member within or outside the premises of the Exchange for conducting the business and trading of shares and securities”.

 Provided that the operations of ETS terminal within or outside ISE building supervise the Office(s)/Branch Office(s) for the purpose of these Regulations.

 (iv)            “Manager” means “a person appointed by the Member to operate and supervise the Office(s)/Branch Office(s) in accordance with the Rules & Regulations of the Exchange”.

 (v)               “Certificate” means “a Certificate of Registration issued by the Exchange”.

  4.                 PROCEDURE FOR OPENING OF OFFICE(S)/BRANCH OFFICE(S):

A member may open his/its office(s)/Branch Office(s) within or outside premises of the Exchange for conducting business and trading of shares and securities in accordance with Rules & Regulations of the Exchange as well as the law applicable in this behalf subject to prior approval of the Exchange in writing and completion of the following formalities:-

(i)                 An application on the prescribed form (Annexure-A)

 (ii)               An undertaking on prescribed form (Annexure-B)

(iii)              Payment of Registration/Renewal fee of Rs. 5000/- per annum per office/per branch;

(iv)             Documents evidencing the ownership of the Office or Branch Office and/or agreement with landlord of the office, if that office is not owned by the member;

(v)               Name of Manager alongwith residential address, NIC, his bio-data, two latest passport size photographs and his specimen signature;

(vi)             Specimen signature (s) of the persons authorized to deal with clients;

(vii)            List of employees, alongwith their NIC and residential addresses;

(viii)          All outstanding creditors/debtors and un-executed trade of the Branch Office(s)/Office(s) shall be reported to the Exchange at the end of each month;

(ix)             List of authorized signatories to the bank accounts if maintained separately by that Branch/Office;

(x)               The Exchange shall be provided with all the necessary particulars of the person(s) appointed by the member either as agents or otherwise working on behalf of the members;

(xi)             All the dealings at the Office(s)/Branch Office(s)/Shop(s) shall be subject to the Rules & Regulations of the Exchange;

(xii)            The Member shall be fully responsible for all the dealings, acts of agents/employees and shall be liable thereof;

(xiii)          Any change occurring in the setup of Office(s)/Branch Office(s)/Shop(s) shall be notified to the Exchange within 24 hours alongwith details of all the outstanding business including details of receivables/payable of cash and securities to/from clients;

(xiv)          A board at a conspicuous will be displayed containing the names who are authorized to deal with the customers;

(xv)           No person shall be employed at an office or a branch office if he has resigned from or has been suspended from any other brokerage house without an NOC from such other brokerage house. The intimation of such change shall also be submitted to the Exchange. This provision shall also be applicable in case of a person who has been working in a brokerage house in any other Exchange in Pakistan;

(xvi)          The branch of such house shall submit a list of investors’ disputes through its main office to the Exchange at the end of each month.

 5.        ELIGIBILITY FOR THE PERSON DEPUTED AS A MANAGER OF THE OFFICE/BRANCH OFFICE

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

(i)                 He is not less than 21 years of age.

(ii)               He has not been convicted of any offense, involving fraud or breach of trust.

(iii)              He has passed at least intermediate examination.

(iv)             He has sufficient experience and knowledge of stock market.

(v)               He has not been adjudicated as insolvent or has suspended payments or has compounded with his creditors.

(vi)             NOC from his previous employer.

6.                 GRANT OF CERTIFICATE OF REGISTRATION

On completion of all requirements, the Exchange shall grant a Certificate of Registration in the prescribed form as (Annexure-C).

7.     OBLIGATION OF A MEMBER OPENING OFFICE/BRANCH

(a)               Display of name of Stock Exchange Member:

The Member opening office/branch within or outside Exchange must display his name outside the Office/Branch.

(b)              Maintenance of proper books of accounts, records, etc.

The Member shall keep and maintain all the client related record/information of the Office/Branch Office at the Head office and shall make necessary arrangement to provide at all reasonable time such information/record to their clients dealing through such Office(s)/Branch.

(c)               Display of Registration Certificate.

(i)                 The Member shall ensure display of the Registration Certificate prominently at the Office(s)/Branch Office(s).

(ii)               A certificate from the Exchange regarding approval for opening the Branch Office.

(d)              A board at a conspicuous place which should contain:

(i)                 Name of the person authorized to deal with the customers.

(ii)               A warning that the branch can not deal in cash.

(iii)              That the customer must demand deliveries as per Rules of the Exchange.

(iv)             That nobody is authorized to take deposit money or fixed profits which is illegal.

(e)              Inspection of records.

Where it appears to the Exchange so to do, it may ask for any information or document and/or appoint one or more of its employees to undertake inspection of the books of accounts, other records and documents of the Office(s)/Branch Office(s) maintained either at the Head Office or Branch Office and the Member shall ensure to provide such information/documents.

(f)                Stationary

The Member shall ensure that all stationary i.e. confirmation/contract/cash memo/any other document will be issued only in his name. The member (s) will also be required to clearly state on the printed stationary the addresses of all his branch offices simultaneously.

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8.                 OFFICE(S)/BRANCH OFFICE(S) OF A CORPORATE MEMBER

A Corporate Member while opening Office(s)/Branch Office(s) shall also comply with all the above Regulations and shall provide the necessary information to the Exchange duly supported by the Board Resolution.

9.         SUSPENSION, CANCELLATION OF REGISTRATION, ETC

If a Member fails to comply any of the provisions or requirements of these Regulations, the Exchange can take action against such Member(s) including suspension of Registration of a particular Office/Branch Office and/or suspension of membership.

10.             SUSPENSION OR CLOSURE OF OFFICE(S)/BRANCH OFFICE(S).

 A Member may suspend trading facility at the Office(s)/Branch Office(s) with a notice in writing to the Exchange. However, it will be ensured that the Office(s)/Branch Office(s) remains open for a period of atleast one month thereafter for disposal of pending matters.