TERMS AND CONDITIONS

TERMS AND CONDITIONS terms and conditions terms and conditions

Special Terms and Conditions - PSX (Pakistan Stock Exchange)

Important:  The terms and conditions set herein below shall be equally binding on Javed Securities (Pvt.) Ltd. (JISPL ) and the account holder(s), Kindly Read all & carefully.

 

1.  The Terms and Conditions set herein below shall govern the Sub-Account forming part of the Account Family of the CDS Participant Account of the Participant, which shall be binding on the Sub-Account Holder as well as the Participant:

 

2.  Provisions of the Central Depositories Act, 1997 ("the Act") and the Central Depository Company of Pakistan Limited Regulations ("the Regulations") as amended from time to time and the CDC’s Operating Manual/Operating Instructions developed and issued pursuant there to from time to time and any other by-laws, directives of the Securities and Exchange Commission of Pakistan issued from time to time, shall govern the opening, maintenance and operations of the Sub-Account.

 

3.  Each page of this form should be duly signed by the Applicant (and joint Applicants if any) and the Participant or any authorized person of the Participant.

 

4.  The Participant shall ensure provision of copies of all the relevant laws, rules and regulations at his office for access to the Sub-Account Holder(s) during working hours.

 

5.  The Participant shall provide a list of his authorized agents/traders and designated employees, who can deal with the Sub-Account Holder(s) from time to time. Any change(s) therein shall forthwith be intimated in writing to the Sub-Account Holder(s).

 

6.  The Registration Details and such other information specified by the Applicant in this form for opening of the Sub-Account appear in the Sub-Account to be established by the Participant in the Central Depository System who shall ensure the correctness and completeness of the same. Any change therein notified by the Sub-Account Holder from time to time in writing to the Participant shall reflect in the Sub-Account of such Sub-Account Holder.

 

7.  The Book-entry Securities owned by the Sub-Account Holder shall be exclusively entered in the Sub-Account of such Sub-Account Holder.

 

8.  Transfer, Pledge and Withdrawal of Book-entry Securities entered in the Sub-Account of the Sub-Account Holder shall only be made from time to time in accordance with the authorization given by the Sub-Account Holder to the Participant in Part (G) above pursuant to Section 12 and 24 of the Act. Such authorization shall constitutes the congregated / entire authorizations by the Sub-Account Holder(s) in favour of the Participant and supersedes and cancels all prior authorizations (oral, written or electronic) including any different, conflicting or additional terms which appear on any agreement or form the Sub-Account Holder(s) has executed in favour of the Participant.

 

9.  Participant shall be liable to give due and timely effect to the instructions of the Sub-Account Holder given in terms of the above-referred authorization with respect to transfer, pledge and withdrawal of Book-entry Securities entered in his Sub-Account under the control of the Participant. Such instructions, among other matters, may include closing of Sub-Account.

 

10.  Participant shall send within 10 days of end of each quarter Account Balance statement to the Sub-Account Holder without any fee or charge showing the number of every Book-entry Security entered in his Sub-Account as of the end of the preceding quarter. Such Account Balance statement shall be generated from the CDS. Further, the Sub-Account Holder may request for such statement (including Account Activity reports) from the Participant at any time on payment of a fee on cost basis as prescribed by the Participant. The Participant shall be liable to provide such report/statement to the Sub-Account Holder within 3 Business Days from the date of receipt of such request, with or without charges.

 

11.  In consideration for the facilities and services provided to the Sub-Account Holder by the Participant, the Sub-Account Holder shall pay fees and charges to the Participant as applicable for availing such facilities and services under the Act, the Regulations and these Terms & Conditions. In case of outstanding payment against any underlying market purchase transaction, charges and/or losses against the Sub-Account Holder, the Participant shall have the right, subject to Clause 7 above and under prior intimation to the Sub-Account Holder to clear the payment, charges and/or losses (including any shortfall in margin requirements) within the reasonable time prescribed by the Participant, to dispose off the necessary number of Book-entry Securities of the Sub-Account Holder and apply the net proceeds thereof towards the adjustment of such outstanding payment, charges and/or losses, provided that the Participant shall report the disposal of such Securities to the relevant Stock Exchange as an off-market transaction where the Securities are transferred from the Sub-Account to the House Account of the Participant.

 

12.  Participant shall have the right, subject to 20 Business Days prior written notice to the Sub-Account Holder to close the Sub-Account if it becomes dormant with no holding balances. No Sub-Account shall be treated as dormant unless there is no activity for continuous six months.

 

13.  Where admission of Participant to the CDS is suspended or terminated by the CDC, the Sub-Account Holder shall have the right, subject to the Regulations and the Procedures made thereunder, to request CDC to change his Controlling Account Holder and Participant shall extend full cooperation to the Sub-Account Holder in every regard, without prejudice to his right of recovery of any dues or receivable from the Sub-Account Holder.

 

14.  In case of a Joint Account, all obligations and liabilities in relation to this Sub-Account or under these Terms and Conditions shall be joint and several.

 

15.  These Terms and Conditions shall be binding on the Participant’s nominee, legal representative, successors in interest and/or permitted assigns.

 

16.  In the event of any conflict between these Terms and Conditions and the terms and conditions contained in Trading Account Opening Form or any other forms/authorizations prescribed by the Participant or otherwise, the Terms and Conditions contained herein shall prevail, insofar as it is related to the custodial services to be provided by the Participant under the legal framework of CDC.

 

17.  The provision of services as provided for hereunder shall not constitute Participant as trustee and the Participant shall have no trust or other obligation in respect of the Book-entry Securities except as agreed by the Participant separately in writing.

 

18.  The Participant is not acting under this application form as Investment Manager or Investment Advisor to the Sub-Account Holder(s).

 

19.  The Participant should ensure due protection to the Sub-Account Holder regarding rights to dividend, rights or bonus shares etc. in respect of transactions routed through him and not do anything which is likely to harm the interest of the Sub-Account Holder with/from whom it may have had transactions in securities.

 

20.  Subject to Section 21 of the Act, Participant shall maintain complete confidentiality of any information or document that is in his knowledge or possession or control relating to the affairs of the Sub-Account Holder(s), and in particular, relating to their Sub-Account(s), and shall not give, divulge, reveal or otherwise disclose such information or document to any other person.

 

21.  These Terms and Conditions shall be deemed to have been amended, altered and/or modified if rights and duties of the parties hereto are altered by virtue of change in law, rules, regulations etc. of SECP and/or articles, rules, regulations of the Stock Exchanges and/or the Act, CDC Regulations, CDC’s Operating Manual/Operating Procedures and/or any circular, directive or direction issued therein, such changes shall be deemed to have been incorporated and modified the rights and duties of the parties hereto.

 

22.  The Participant shall ensure that duly filled in and signed copy of this form along with the acknowledgement receipt is provided to the Sub-Account Holder.

23.  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. JISPL 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 JISPL 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.

24.  The amount deposited as security margin by the Account Holder(s) with JISPL 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). JISPL shall not use such amounts for his own use.2(a). The credit amount of the Account Holder(s) shall be kept by JISPL in a separate bank account titled “Account Holder / Client Account” and shall not be used by JISPL for his own business.

 

25.    The Minimum amount as security margin by the Account Holder(s) with JISPL is Rs.5000/ the account shall be credited with this amount all the time other then other security deposit for Trading (BUY & SELL). This amount to be used for the purposes of annual Charges, Fees & subcriptions.

 

26.  JISPL shall be authorized to act on the verbal instructions of the Account Holder(s). JISPL 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 JISPL 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. JISPL 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 JISPL 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.
 

27.  JISPL 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.

 

28.  In case there are any error(s) in the daily confirmation statement, the Account Holder(s) shall report the same to JISPL 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).

 

39.  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), JISPL 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.

30.  (a)  JISPL 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, JISPL shall ensure delivery of physical shares along with verified transfer deeds against payments, to the Account Holder(s). Further, JISPL 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, JISPL 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.

 

31.  JSPL 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 JISPL through banks would be regarded as good as cheque. JISPL 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 JISPL 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. JISPL 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/-, JISPL shall immediately report within one business day such instances with rationale thereof to the Exchange in accordance with the mechanism prescribed by the Exchange.

 

32.  JISPL 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.

33.  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 JISPL or his authorized representative on a periodic basis. In case of any discrepancy in the ledger statement, the Account Holder(s) shall inform JISPL within 1 day of receipt of the ledger statement to remove such discrepancy.
 

34.  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).

35.  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 JISPL 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.

 

36.  JISPL 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.

 

37.  JISPL 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.

 

38.  JISPL 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, JISPL shall be obliged to disclose the same for which the Account Holder(s) shall not raise any objection whatsoever.

 

39.  JISPL 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.

 

40.  Acceptable mode of communication between the Account Holder(s) and JISPL 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.)

or 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.

 

41.  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.
 

42.  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.

 

43.  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 JISPL I/we may incur losses for which I/we, the Account Holder(s) shall not hold JISPL responsible.
 

44. On its part JISPL, 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) JISPL 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, JISPL will be entitled to deal at the limit. The Account Holder(s) shall have no objection. If JISPL executes its/his/her order, within desired limits, or negotiated trades within its House.

 

45.  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 JISPL 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 JISPL. JISPL is hereby authorized to sell and/or purchase any and all property in any such accounts without notice to satisfy such general lien. JISPL 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 JISPL 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 JISPL may be exposed to loss, unless the Account Holders) deposited further securities to protect JISPL.

 

46.  JISPL will maintain Account Holder(s) account in its hooks for all transactions of sale and purchase of shares and securities. JISPL will debit the Account Holder(s)’s account for the value of shares purchased by it/him her through JISPL and credit the Account Holder(s)’s account for the value of shares sold by it/him/her through JISPL. JISPL will debit the Account Holder(s)s account for all commissions, JISPL age and other charges that are normally applicable, including those otherwise fixed by the Karachi, Lahore and Islamabad Stock Exchanges (Guarantee) Limited.

 

47.  TELEPHONE MONITORING: JISPL may record telephone calls to .monitor the quality of service the Account Holders) receives and to verity securities transaction information.

 

48. LIABILITY: JISPL 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.
                                                                                                                                     or
JISPL 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. JISPL 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 JISPL. In the event of failure or refusal to effect the delivery against any purchase contract by JISPL of the Exchange through whom JISPL may have purchased the shares/securities or refusal to accept delivery against any sale contract by any JISPL of the Exchange through whom JISPL may have sold the shares/securities, JISPL 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. JISPL 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 JISPL or any other persons in pursuance of or in connection with this agreement.

 

49.  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.
 

50.  l/We, the Account Holder(s) understand that the shares trading business carries risk and subject to the due diligence on part of JISPL I/we may incur losses for which I/we, the Account Holder(s) shall not hold JISPL responsible.

 

51.  I/We, the account Holders) further confirm that all information given in this application is true and complete and hereby authorize JISPL 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.

Signatures:

 

Main Applicant :    ______________                           Joint Applicant 1:  _______________                                  
Joint Applicant 2:  ______________                           Joint Applicant 3:  _______________

 

Javed Iqbal Securities (Pvt) Ltd.