PAKISTAN: PSX Approves Regulations in Relation to Ease of Reporting and Compliance Obligations Applicable on Securities Brokers

Thursday April 27 2023

On 26^th April 2023, Pakistan Stock Exchange (PSX) announced that with the approval of the Securities and Exchange Commission of Pakistan, it has made following amendments to PSX Regulations: 

Frequency of submission of pattern of shareholding: 

The frequency of submission of pattern of shareholding, under PSX Regulation 4.8.2, has been changed from `quarterly’ to `half yearly’ basis. The Securities Brokers are now required to submit their pattern of shareholding within one month of end of each half year. 

Obtaining consent of customers on the tariff schedule while opening trading account: 

The requirement of PSX Regulation 4.24.2 to obtain sign of customer on tariff schedule at the time of opening of trading account has been made flexible by replacing it with the requirement to seek consent of the customer through signature or using digital means or otherwise in written form. This amendment provides Securities Brokers wide range of options to obtain consent from the customers in a verifiable manner. 

Intimation of change in the brokerage commission rates to the customers: 

The requirement of PSX Regulation 4.24.3 that any change in brokerage commission rates will take effect after the same is agreed and duly signed by the customers has been replaced with the requirement to communicate such change to customers by Securities Brokers at least 30 days in advance of the effective date of the change. The change must be communicated in writing through acceptable mode of communication as provided under Customer Relationship Form (CRF) and Sahulat Form. 

Transmission of half-yearly and annual financial statements: 

Considering that the THIMS has been updated to enable electronic filing of half-yearly and annual financial statements, the requirement to submit hard copy thereof is removed from PSX Regulations 4.26 (a) & (b). 

Reporting of material violations by compliance officers of Securities Brokers: 

The requirement relating to regular six-monthly reporting of compliance status by the compliance officers of Securities Brokers to the Exchange has been removed from PSX Regulation 22.6.8 (e). Instead, the compliance officers must now report to the Exchange the material violation(s) as newly set out in the aforesaid PSX Regulation. 

The aforesaid amendments to PSX Regulations have taken effect from April 14^th, 2023.  

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