Karachi: This is reference to the directive No. F. 13/SMD/SECP/2005 dated 23-09-2005 issued by the Securities and Exchange Commission of Pakistan (SECP) on the subject cited above.
2. Based on some queries made by some market participants in relation to broker to broker trading on the some exchanges in reference to the subject directive, the following is clarified.
i. No broker whether individual or corporate can trade with any other broker of the same exchange on proprietary and / or client account.
ii. Chief Executive/ Managing Director (“with whatever name called”) and Nominee Director of a brokerage house can only trade through the brokerage house which he/ she is associated with in the said capacity.
iii. Immediate family members (spouses, children, siblings and parents) of CEO/MD and Nominee Director is associated with.
iv. Employee of a brokerage house shall only trade through the brokerage house which they are associated with in the said capacity.
v. Director (others than CEO/MD/Nominee) may trade through other brokers of the same exchange.
vi. Shareholders of a brokerage house may trade through other brokers of the exchange.
3. For point V and VI i.e. trading by Directors and Shareholders shall be subject to fulfillment of certain disclosures to be prescribed by the exchange(s) with the prior consent of SECP.
4. Further, the Stock Exchange are advised to review their respective Regulations for propriety trading to remove any anomalies/ inconsistencies therein terms of the above clarifications to bring them in line with the spirit of the subject directive. The required amendments should be submitted for SECP approval on priority.
For more information, contact:
Karachi Stock Exchange
Tel: (92-21) 111-001122
Fax: (92-21) 3241 0825, (92-21) 3241 5136