Brokers file Civil Suit against PSX for revision in IT Service Charges

September 17, 2018 (MLN): Ninety-three Brokers/Trading Right Entitlement Certificate (TREC) holders of Pakistan Stock Exchange (PSX) have filed a civil suit in the High Court of Sindh against PSX for damages amounting to Rs 500 million against revision in IT Service Charges by PSX and are seeking permanent injunction on the matter.

According to an official notification issued by the Pakistan Stock Exchange (PSX), the plaintiffs have challenged the revision in I.T. Services Charges, which were approved by the Board of Securities and Exchange Commission of Pakistan (SECP).

The charges were initially notified by PSX’s notice on June 04, 2018 and had become effective from July 01, 2018.

First hearing of the injunction application was held today at Sindh High Court where the court allowed PSX’s legal counsel to present its view.

The court did not grant interim injunction as was requested by the plaintiffs.

Moreover, plaintiffs who have not yet selected the packages offered by PSX, were asked to deposit IT charges at revised rates with the Nazir of Court to the extent of the amount that has been enhanced.

According to the notification, “the pre-revision charges will continue to be paid to PSX and the ten Plaintiffs who have already selected the relevant package will continue to pay the full amount of the revised IT charges.”

PSX further stated that they “consider this action of Brokers/TREC holders as groundless and frivolous and intend to vigorously defend their decision in the Court of Law.

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