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