PSX prescribes standard range of brokerage commission

October 10, 2019 (MLN): Pakistan Stock Exchange (PSX) in a notice addressed to all TRE Certificate Holders, has informed that the PSX, in exercise of powers conferred upon it u/s 7 of the Securities Act 2015, has  made the amendments to Chapter 4 [Trading Rights Entitlement (TRE) Certificate] of PSX regulations  with the approval of Securities and Exchange Commission of Pakistan (SECP).

As per the approved amendments, PSX has inserted a new clause 4.29 in chapter 4 of its Rulebook to prescribe the standard range/ scale of brokerage commission to be collected by the securities brokers from their customers upon execution of orders in different types of transactions.

The prescribed minimum rate for brokerage commission that securities brokers can charge from their customers upon execution of orders is 3 paisa per share or 0.15% of the transaction value, whichever is higher, up to 2.5% of the transaction value.

The above-mentioned prescribed rate will be charged on execution of orders through, Ready Delivery Contract Market (Ready Market), Ready Market-Intra-Day Squared, Ready Market trade financed through Margin Trading System, Deliverable Futures Contract Market and Deliverable Futures Contract Market- Squared Transaction.

Whereas, no minimum rate of commission prescribed for transactions type include; Arbitrage between Ready and Futures Market and Propriety Trade and trades of Sponsors and Directors of the Securities Broker and their immediate family member.

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