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Types Of Accounts
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Corporate accounts
Corporate accounts, as the name suggests, can be opened by institutions, companies,
partnerships, trusts and non-profit organizations. please refer Section Na-1 and
Na-3 of the New application Form.
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Nature of accounts
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Cash Accounts
Cash accounts are brokerage accounts in which the customer is required to pay the
full amount prior to the placement of orders and where the customer's trading limit
is equal to the amount of funds deposited in the account.
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Margin accounts
a brokerage account which allows an investor to buy securities with money that he/she
does not have. The Margin Value is decided in the New account Form. please refer
the Margin trading sub-section in the Section Na-1 of the New account Form. also
refer the Margin trading and Margin Financing application Form Na-4 along with the
sub section III in the Section Na-5 Terms and Conditions.
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Requirements for New account
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New account Form, filled and signed by the applicant
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Copy of the CNIC. In case of Joint account, copy of the CNIC of Joint account Holder
is also required
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Requirements for account Maintenance
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- The Client has to have 50,000 Rs. worth of stock or cash in
the account at a given time for the maintenance of account once it is opened in
the Ismail Iqbal Securities (pvt) ltd.
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Types of Orders
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- Market Order
A request to buy or sell stocks at the prevailing market price.
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- Limit Order
a request to buy or sell stocks at a determined price. Limit orders allow you to
define the highest price you are willing to pay when buying, or the lowest price
you are willing to accept when selling.
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Trading & Settlement System
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The Karachi Stock Exchange has introduced an state-of-the-art computerised trading
system known as Karachi automated trading System (KaTS) to provide a fair, transparent,
efficient and cost effective market for the investors.
Currently, the exchange conducts one trading session from Monday to Thursday and
two sessions on Friday.
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Trading Segments
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- Futures trading in provisionally Listed Companies
transaction in this segment are settled through the Clearing House that nets out
the purchases and sales and the financial obligations thereon of each member/firm
for the notified clearing period and issues instructions for deliveries of netted
outstanding business. payment from and to members are routed through the Clearing
House. For the securities declared to be "eligible securities" by the Central Depository
Company the Clearing House procedure remains the same as outlined above except that
the KSE does not permit their physical settlement.
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- Spot / T+1 transactions
For about 5 days before the closure of shares transfer book notified by the company,
transactions are settled on T+1 basis.
For non-CDC securities the delivery and payment is settled through the Clearing
House of the Exchange, however, delivery is tendered directly between the buying
and selling members as per the instruction of the Clearing House.
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- Future Contracts
Under the Regulations Governing Future Contracts, trading in Future Contracts started
in July 2001. presently 13 companies are traded under Future Contract and the Contract
is fixed for a period of one month.
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- Transaction Costs
Brokerages on transactions are freely negotiable between the brokers and clients.
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- Stamp Duty
Stamp duty is charged at 1.5% of the face value of the shares under the physical
form of transfer. There is no stamp duty for transfer settled through the Central
Depository System, however, there is a one-time stamp duty at the rate of One paisa
per share at the time of deposit of securities in the CDS.
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