The Islamabad Stock Exchange (ISE) has advised the investors to use new account opening forms for starting fresh stock business through any broker.
A press release of the ISE issued here on Thursday said that a new form has been introduced by the exchange from January 15, 2004.
The new form has been developed to safeguard the interest of investors, create uniformity in account opening forms being maintained by various brokers of the exchange, enhance awareness about prudent trade practices and rules and regulations of the exchange and avoid any potential disputes among the investors and brokers.
The members of the exchange have been required to use new account opening forms for the investors and to replace the old forms with the new forms.
The Securities and Exchange Commission of Pakistan (SECP) upon the recommendation of the stock exchanges has made certain amendments in the new form.
The amendments among others include encouraging the investors to make payments of over Rs 50,000 through account-payee cheques, providing list of traders and designated employees authorised to deal with the accountholders on behalf of the brokers and allowing communication through e-mail.
The members of the exchange may also include other terms to protect the rights of the concerned parties as long as such terms do not, in any way, negate or undermine any of the terms and conditions laid down in the new account opening form.
In pursuance of the commission's directive, all the new accounts will now be opened on the new form from January 20, 2004. However, the implementation of the same has been extended till March 31, 2004 in respect of existing accountholders.
The new form will be a milestone in strengthening trade relationship between the members and their investors.