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Frequently Asked Questions
1. Top 10 Questions
2. About Pearl Securities Limited
3. Online Trade
4. Account Information
5. Computer Requirements
Top 10 Questions Why should I switch from my broker to Pearl Trade?
Pearl Trade provides direct access trading services that allow you to effectively
capture spurts of volatility and momentum in the markets. With Pearl Trade, you
decide where, when and how your order is executed. If you are frustrated with slow
trade confirmations and executions, unreliable web sites and ineffective technical
analysis tools, Pearl Trade is the answer.
How do I open an account?
Account opening with Pearl Securities Limited (PSL) consists of the following simple steps:
1. Read, understand and accept our Terms and Conditions before signing an application
form.
2. Submit an Individual or Joint Account Application in any one of the following
ways:
a. At our Head Office/Branches/ Franchises or through one of our authorized sales
representatives; or
b. Download forms from this website, print, complete, and mail the web Individual/Joint
Account Application to our mailing address; or
c. Request an Account Application Pack through the email link available on “Contact
Us” menu on this website.
3. Enclose the minimum deposit instrument of PKR50,000 along with the filled application
form. The deposit may be in the form of shares registered in your name or crossed
cheque, through pay order, demand draft in the favor of Pearl Securities
Limited.
4. The Application should be mailed to our following address: New Accounts Pearl
Securities Limited. Suit # 204, Business & Finance Centre, I.I. Chundrigar
Road, Karachi, Pakistan.
5. Upon receipt of completed application forms, and the minimum deposit, your account
will be opened and activated. We inform you through a letter that contains your
Account Name and Number and the name of your PSL Relationship Manager to enable
trading through the account.
How do I download your software?
It is very easy. Under the on-line menu of our website, you can follow the detailed
instructions and download our software directly.
How do I start on-line trading?
After downloading the software, you are requested to go through the web trading
demo available on the online trade menu of our website.
How much does it cost to buy and sell shares?
Our current commission structure is provided with the Account Application
What is a margin deposit?
Clients allowed by PSL to trade in excess of their cash or portfolio balances are
required to maintain a margin deposit in order to cover the level of trading exposure.
The margin is the client's equity in the value of the portfolio or trading position.
The client's trading limit is set at a multiple of the margin deposit. Margins can
be in the form of cash and/or shares. However, margin shares must be on our list
of qualified stocks.
How can I collect dividends on my shares?
Stock dividends (bonus shares): The issuing company will credit your Investor Account/Sub-Account
with the CDS by the number of shares you are entitled to. In the case of credit
to your Sub-Account with us, we will transfer these shares upon their receipt from
the CDC. Cash dividends: The issuing company will dispatch the dividend warrant
directly to your mailing address provided in the CDS Investor Account/Sub-Account
opening form. Alternatively, if you have an arrangement with a bank providing custodial
services, you can also give a mandate to that custodial bank to collect dividends
on your behalf. You will need to complete the relevant sections of the Account Opening
Form for Sub-Account in CDS for this purpose.
How an investor can apply for Right shares?
If an investor is eligible for the right shares, he/she will receive a Right allotment
letter at his/her mailing address from the company/registrar. The customer will
then be required to deposit the Right allotment letter to his/her Bank (if the right
are in the name of the customer, then the same will be directly subscribed. Or else
if the rights are not in the customer's name, then it must be verified by the company/registrar).
The Bank will debit the amount against the subscription of the right shares from
the bank account. Please note; on the backside of the right allotment letter page
3, the customer may write the Brokerage house participant Id and their CDC Sub account
number, where he/she wishes to receive the ordinary shares. The right shares after
converting into ordinary shares will be credited in his/her mentioned participant
account. If the above details are not mentioned, the customer will receive the right
shares at his/her mailing address in physical form. Right shares are converted into
ordinary shares and appear in your Trade account, generally, after about 5-6 weeks
from the date of subscription.
What safeguards protect my account?
There is presently no statutory government established fund that compensates investors
for monetary loss suffered through broker defaults. The KSE has established an Investors
Protection Fund under the Investors Protection Fund Regulations. Details may be
obtained from the KSE.
The choice of broker is an investor's primary safeguard. At PSL, client interest
is protected through:
• Greater self-accountability of PSL as a public listed company
• Large capital of the company
• In-depth research
• Efficient execution
• Internal controls/compliance
• Quality of human resources
What taxes will I be liable to as an equity investor?
The following taxes have been levied on equity investors in the Finance Bill 2004-05:
• Capital Value Tax (CVT) @ 0.01% on the purchase value of shares.
• Withholding tax @ 0.005% on the sale value of shares.
• Capital gains income from equity trading is tax exempt up to June 2010.
• Dividend income is subject to withholding tax; the paying company deducts the
tax at source at various rates based on the recipient's status.
• Certain Muslim investors are subject to Zakat (an Islamic wealth tax) on the value
of their equity holdings as on the first day of the Holy Month of Ramadan. The paying
company deducts the Zakat amount from the next dividend payment to shareholders.
Please note PSL does not purport to provide tax advice. For further details you
should seek professional tax guidance.
Online Trade Why should I switch from my broker to Pearl Trade?
Pearl Trade provides direct access trading services that allow you to effectively
capture spurts of volatility and momentum in the markets. With Pearl Trade, you
decide where, when and how your order is executed. If you are frustrated with slow
trade confirmations and executions, unreliable web sites and ineffective technical
analysis tools, Pearl Trade is the answer.
How can I place my orders?
Orders can be placed through logging on to your user account through the internet
by a simplified trading screen or through the telephone call to the retail trades
executor assigned to you.
What markets can I trade?
You can trade in all stocks listed on the Karachi Stock Exchange (KSE).
Am I able to change or cancel an order?
An order can be changed or cancelled through your web based user account or by informing
the assigned trade executor, provided the order has not been executed till that
time.
How will I be notified of trade executions?
You can watch the status of the order through the web-based user account. Also,
an email confirmation will be sent to you after the completion of back office processing
through the automated software. Alternatively, you can also make a telephone call
to the assigned trade executor to confirm trade executions.
Is there any demo or illustration present on PSL’s website to learn about how to
operate online trading?
Yes. You can see the Trade Execution and Software Demos in the Online Trade menu
on our website. Account Information
How do I open an account?
Account opening with Pearl Securities Limited (PSL) consists of the following simple steps:
1. Read, understand and accept our Terms and Conditions before signing an application
form.
2. Submit an Individual or Joint Account Application in any one of the following
ways:
a. At our Head Office/Branches/ Franchises or through one of our authorized sales
representatives; or
b. Download forms from this website, print, complete, and mail the web Individual/Joint
Account Application to our mailing address; or
c. Request an Account Application Pack through the email link available on “Contact
Us” menu on this website.
3. Enclose the minimum deposit instrument of PKR50,000 along with the filled application
form.The deposit may be in the form of shares registered in your name or crossed
cheque, through pay order, demand draft in the favor of Pearl Securities
Limited.
4. The Application should be mailed to our following address: New Accounts Pearl
Securities Limited. Suit # 204, Business & Finance Centre, I.I. Chundrigar
Road, Karachi, Pakistan.
5. Upon receipt of completed application forms, and the minimum deposit, your account
will be opened and activated. We inform you through a letter that contains your
Account Name and Number and the name of your PSL Relationship Manager to enable
trading through the account.
What is the difference between the “Individual Account”, “Joint Account” and “Institutional
Account”?
The following types of accounts can be opened:
• Individual account
• Joint account for two persons
• Institutional accounts for joint stock companies, mutual funds, trusts etc. (must
be opened in person at our offices)
• Individual Account is an account for one person.
Trading instructions will only be accepted from the account holder or his/her authorized
representative. All trades will be registered in the name of the account holder.
• Joint Account is the account in the name of two persons. Trading instructions
will be accepted from either person, or their authorized representative. All trades
will be registered in the name of both account holders.
What is a minimum deposit?
The account holder must maintain a minimum deposit in the form of cash and/or shares
at all times. Our current minimum deposit requirement is PKR 50,000.
What is a margin deposit?
Clients allowed by PSL to trade in excess of their cash or portfolio balances are
required to maintain a margin deposit in order to cover the level of trading exposure.
The margin is the client's equity in the value of the portfolio or trading position.
The client's trading limit is set at a multiple of the margin deposit. Margins can
be in the form of cash and/or shares. However, margin shares must be on our list
of qualified stocks.
Where are my funds held?
Your cash balance will be held by PSL, and it will be reflected in your account
statement.
Are there any monthly fees on my accounts?
At present there are no such charges.
Can I authorize someone else to trade in my account on my behalf?
Yes. This can be granted by nomination through a Letter of Authority (LOA). A LOA
addressed to Pearl Securities Limited. is provided with the account application
form.
What is the Central Depositary Company (CDC)/Central Depository System (CDS)?
The CDC is a company that operates an electronic share register called the Central
Depositary System (CDS). The CDS eliminates the need for physical movement of share
certificates. It has also solved investor problems related to stock handling on
the settlement date, registration of shares, and exercise of corporate action benefits.
Clients are required to open a CDS sub-account with PSL, for which a form is included
in the account application booklet.
How do I transfer my holdings in the CDS to a broker?
You are required to transfer your holding to the broker's CDS account. If you have
a CDS Investor Account you can issue transfer instructions. Alternatively, you can
instruct your custodian/existing broker holding shares on your behalf to transfer
those shares. You will be able to trade those shares once the receiving broker acknowledges
receipt.
How can I collect dividends on my shares?
Stock dividends (bonus shares): The issuing company will credit your Investor Account/Sub-Account
with the CDS by the number of shares you are entitled to. In the case of credit
to your Sub-Account with us, we will transfer these shares upon their receipt from
the CDC. Cash dividends: The issuing company will dispatch the dividend warrant
directly to your mailing address provided in the CDS Investor Account/Sub-Account
opening form. Alternatively, if you have an arrangement with a bank providing custodial
services, you can also give a mandate to that custodial bank to collect dividends
on your behalf. You will need to complete the relevant sections of the Account Opening
Form for Sub-Account in CDS for this purpose.
How an investor can apply for Right shares?
If an investor is eligible for the right shares, he/she will receive a Right allotment
letter at his/her mailing address from the company/registrar. The customer will
then be required to deposit the Right allotment letter to his/her Bank (if the right
are in the name of the customer, then the same will be directly subscribed. Or else
if the rights are not in the customer's name, then it must be verified by the company/registrar).
The Bank will debit the amount against the subscription of the right shares from
the bank account. Please note; on the backside of the right allotment letter page
3, the customer may write the Brokerage house participant Id and their CDC Sub account
number, where he/she wishes to receive the ordinary shares. The right shares after
converting into ordinary shares will be credited in his/her mentioned participant
account. If the above details are not mentioned, the customer will receive the right
shares at his/her mailing address in physical form. Right shares are converted into
ordinary shares and appear in your Trade account, generally, after about 5-6 weeks
from the date of subscription.
How much does it cost to buy and sell shares?
Our current commission structure is provided with the Account Application.
When, and how, will I receive my trade contracts and account statements?
Trade contracts are emailed to the client's given email address after back office
processing on the same day. Clients will also get a monthly statement of account
within three days of day of settlement for the preceding month through email. The
account statement contains information on the current cash position, stock portfolio
and outstanding transactions. Computer Requirements
What are my computer requirements for Pearl Securities online trading account?
1. To Login and trade via Pearl Securities Limited, we recommend a DSL, Cable modem or other
high bandwidth solution.
2. Before installing the online trade software, be sure your system meets these
minimum requirements:
Operating System Windows XP SP2
CPU Pentium IV 1 GHz
Memory 1 GB Ram
Video Card 128 MB video
Internet Connectivity DSL, Cable Modem or other high bandwidth solution
Please note that attempting to operate the online trading account on a PC, which
does not meet minimum requirements, will result in system instability. Such symptoms
as freezing, loss of Internet connectivity, increased lag times in the delivery
of market data, and other negative consequences may be experienced.
If you have any other questions or require support concerning your firewall,
please do not hesitate to contact us at (92) (21) 32461468-70
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