PSX tightens rules: No cash withdrawals allowed by brokers from client accounts

News Image

MG News | June 24, 2024 at 11:47 AM GMT+05:00

0:00

June 24, 2024 (MLN): To strengthen investor protection measures, the Pakistan Stock Exchange (PSX) has amended its regulations, prohibiting securities brokers from making cash withdrawals from client-titled bank accounts and ensuring all payments to customers must now be made through banking channels.

In addition to the aforementioned amendment under Section 7 of the Securities Act, 2015, the local bourse has introduced several other changes as well.

Accordingly, PSX shall inform the SECP and the relevant banks of the TRE Certificate Holder regarding suspension, cancellation or forfeiture of TRE Certificate of such TRE Certificate Holder.

Further, in case of cancellation, forfeiture or declaration of a securities broker as defaulter, PSX, while referring the case to the SECP, shall request it to take further appropriate action(s).

Moreover, PSX is empowered to obtain account balance confirmation of any one or more of the client-titled bank accounts maintained by the securities broker with its written authority.

For this purpose, PSX may require the securities broker to authorize on its letterhead the relevant officials of PSX for obtaining such information from the relevant branch of the concerned bank.

The securities brokers are further authorized to submit to PSX the details of all business bank account(s) opened for holding funds as and when required by PSX.

The securities broker shall be required to inform PSX within five (05) working days of opening of new bank account or closure of existing bank account. Such information shall be submitted in the manner to be notified by the PSX.

Another change stipulates that the funds available in the proprietary and client-titled bank accounts of a defaulted securities broker shall vest with the PSX for the settlement of verified claims against the concerned defaulted broker.

In addition to the above, PSX has also introduced a new Clause 4.9A in PSX Regulations which stipulates that a TRE Certificate Holder may pass members' resolution for voluntary winding-up subject to mandatory compliance with the procedures prescribed therein.

Where a TRE Certificate Holder passes members' resolution for voluntary winding-up without complying with the prescribed procedures, PSX shall suspend the trading terminals of such TRE Certificate Holder until further notice.

Consequently, the earlier abrupt action of declaring such a non-compliant TRE Certificate Holder as a defaulter ipso facto under Clause 21.4 has been removed.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 134,299.77
290.06M
0.39%
517.42
ALLSHR 84,018.16
764.12M
0.48%
402.35
KSE30 40,814.29
132.59M
0.33%
132.52
KMI30 192,589.16
116.24M
0.49%
948.28
KMIALLSHR 56,072.25
387.69M
0.32%
180.74
BKTi 36,971.75
19.46M
-0.05%
-16.94
OGTi 28,240.28
6.19M
0.21%
58.78
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,140.00 119,450.00
115,635.00
4270.00
3.75%
BRENT CRUDE 70.63 70.71
68.55
1.99
2.90%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
1.10
1.14%
ROTTERDAM COAL MONTHLY 108.75 108.75
108.75
0.40
0.37%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 68.75 68.77
66.50
2.18
3.27%
SUGAR #11 WORLD 16.56 16.60
16.20
0.30
1.85%

Chart of the Day


Latest News
July 11, 2025 at 10:56 PM GMT+05:00

Gold price in Pakistan rises Rs2,300 per tola


July 11, 2025 at 05:49 PM GMT+05:00

PKR gains 10 paisa per USD


July 11, 2025 at 05:41 PM GMT+05:00

PSX Closing Bell: Bulls Serenade The Bourse


July 11, 2025 at 05:06 PM GMT+05:00

UBL doubles profit to Rs65bn in 1HCY25


July 11, 2025 at 04:19 PM GMT+05:00

Ideal Spinning Mills to exit spinning business



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg