TERMS AND CONDITIONS FOR ONLINE TRADING/AGREEMENT
Online trading will be permitted through an online trading system by Tariq Vohra Securities (Private) Limited, which will act as the Broker for the purpose of buying and selling securities at the Stock Exchange(Online Exchange)
A password or (personal identification number) PIN will be issued to the Account Holder(s) by the Broker to enable the Account Holder(s) to have an access to and use his/her/their/its Account for online trading. The Password/PIN may be communicated through email or through SMS to the Account Holder(s) at his/her/their/its own risk. The Account Holder(s) shall not disclose the Password /PIN to any person and shall take every reasonable precaution to prevent discovery of the Password/PIN by any other person. The Account Holder(s) shall immediately change the password/PIN as soon as it is received from the Broker.
Broker may electronically transfer delivery of confirmation, statements and other notices in connection with Electronic/Online Trading. It shall be the responsibility of the Account holder(s) to review, upon receipt of e-mails, confirmation statement, notices, margin and maintenance calls whether delivered by mail, e-mail or electronic terminal at the discretion of the Broker. If password/PIN is disclosed to any third party the Account holder(s) should immediately notify the same to the Broker. The Account Holder(s) will immediately notify of any loss, theft or unauthorized use of his/her/their/its account number and Password/PIN. The Account Holder(s) shall immediately notify and change his/her/theirs/its e-mail or other address as mentioned in the Account Opening Form.
All risks connected and involved with Electronic/Online Trading will be assumed fully by the Account Holder(s). The Account Holder(s) acknowledges that Electronic/Online Trading may from time be adversely affected (inter alia) by network congestion, equipment failure, software failure, system breakdown, loss of connectivity, power failure, adverse market conditions, partial execution of order and/or technical glitches/failures (including but not limited to connectivity failures). Neither the Broker nor any of its Directors or officers, its management, its branch offices, offices of supervisory jurisdiction and their respective registered representative and employees would be responsible or liable in any manner for any losses or damages that may be suffered by the Account Holder(s) including those due to the misuse of the Account Holder(s) information and affairs by unscrupulous person(s).
The Broker may at any time and from time to time require additional margin in the Account (in cash or Securities) before executing any Orders or undertaking any transactions through Online Trading Facility on account of the Account Holder(s). The amount and timing may vary depending on factors solely at Broker's discretion. Broker shall have the right to liquidate the Account Holder(s) Trading position(s) if the Account margin is insufficient at any time.
The Broker may at its discretion elect with or without notice to square off the Account Holder(s) Account and make obligations in the Account immediately due and payable by the Account Holder(s) without assigning any reason.
All other terms and conditions including Special Terms and Conditions and CDC Terms and Conditions of the Account Opening Form shall be equally applicable to Online Trading Account(s).
ASSIGNING OF TRADING LIMITS:
Trading limits will be assigned for online terminal users according to available securities position/cash in client’s trading account. Chief Executive Officer will
assign the trading limits or changes in trading limits.
MARGIN REQUIREMENTS:
It shall be obligatory upon Tariq Vohra Securities (Pvt.) Limited trading/taking exposure in any market under Chapter 19: Risk Management Regulations of
PSX Rulebook to take all margins and MtM losses from their respective clients in accordance with total Margin Requirements as prescribed by the NCCPL.
Tariq Vohra Securities (Pvt.) Limited depositing margin in the form of Margin Eligible Securities shall always maintain the value thereof after the application
of the relevant haircuts. DFC trading margins (MtM Losses) will be collected on daily basis from cash balance of the clients and profit will be credited on the
month end after adjustment of all MtM losses as per NCCPL Rules and Regulations.
MARGIN CALLS:
Tariq Vohra Securities (Pvt.) Limited will deliver system generated memo of confirmation and exposure report to clients on daily basis. In case of margin
requirement from a client, the client may deposit required margin in the form of security and/or cash or reduce the excess securities position by sale of
securities.
MANNER OF ORDER PLACEMENT
Investors can place order to buy or sell securities through any of the following modes:
| Modes | Manner |
| Telephonic communication through a dedicated recorded telephone line(s) of securities brokers | Customers must use the dedicated telephone numbers provided by the securities broker for placement of orders. |
| Written instructions through registered Email address Mobile/ Fax/ Letter/Telephone/Whatsapp etc. | Customers must ensure to place such orders through the registered email address, mobile number, fax, letter at the registered office address of the securities broker or through any other means in writing. |
| Verbal orders placed in-person | The visiting customers must provide the written acknowledgment of verbal orders given to securities broker. |
The trade orders placed through any of the above modes by the customers should specify the relevant details such as the name and number of the securities and/or futures contracts to be bought or sold, the nature of the transaction and the limitation as to the price, if any, etc.
The securities brokers are required to send/transmit trade confirmation alerts/messages mentioning the particulars of the executed trades, as prescribed, to the relevant customers within 24 hours of the trade execution.
The customers' orders placed through any mode and manner are required to be adequately recorded and preserved by the securities brokers in order to ensure that sufficient documentary evidences exist for efficient resolution of any complaint or dispute that may arise in connection with the order instruction and/or execution thereof.
The customers are advised to regularly view the trade confirmations and quarterly account statements received from the securities brokers and immediately notify any discrepancy or error observed to the securities broker for taking remedial action.
1. Basics of Stock Trading
What is Stock Trading?
Stock trading involves buying and selling shares of publicly listed companies on the stock exchange. In Pakistan, the Pakistan Stock Exchange Limited is the primary platform where these transactions take place. Investors trade stocks to achieve capital gains, dividends, or both.
Role of a Brokerage Firm
A Brokerage firm acts as an intermediary between investors and the stock market. Brokerage firms like Tariq Vohra Securities provide the platforms, tools, and expertise required to execute trades, manage portfolios, and offer financial advice.
2. Opening a Trading Account
Choosing a Brokerage Firm
The first step in stock trading is selecting a reputable brokerage firm. Factors to consider include the firm’s reputation, service offerings, trading platform, and fee structure.
Account Types
When opening a trading account you’ll need to choose between different types, Tariq Vohra Securities offers a Investment Account as per your convenience and needs.
Documentation Required
To open a trading account, you must submit identification documents, proof of address, and a completed account opening form along with copy of Income tax return. Once your account is approved, you’ll receive a unique trading ID and password to access the trading platform.
3. Funding Your Trading Account
Depositing Funds
After opening your account, you’ll need to deposit funds to start trading. This can be done through bank transfers, online payments, or cheque deposits. The deposited funds are credited to your trading account, allowing you to buy shares.
4. Placing a Trade
Types of Orders
There are various types of orders you can place when buying or selling stocks:
- Market Order: Buy or sell at the current market price.
- Limit Order: Buy or sell at a specific price or better.
- Stop-Loss Order: Automatically sell a stock when it reaches a certain price to limit losses.
Executing the Trade
Once you’ve decided on the stock and order type, you can place the trade through the Online trading platform. Tariq Vohra Securities offers a user-friendly trading platform with real-time market data, ensuring that your orders are executed promptly and accurately.
How to cancel orders during system Failure
You can cancel order by calling us over phone in case of system failure
Monitoring Your Trades
After executing a trade, it’s essential to monitor your stock’s performance. This involves keeping track of price movements, company news, and market trends. The trading platform typically provides tools and charts to help you analyze your trades.
5. Settlement and Clearing
T+2 Settlement Cycle
In Pakistan, the stock market follows a T+2 settlement cycle, meaning that the transaction is settled two business days after the trade date. On the settlement date, the shares are transferred to your account if you’re buying, or the funds are credited if you’re selling.
Role of Central Depository Company (CDC)
The Central Depository Company (CDC) facilitates the electronic transfer of shares, ensuring that the settlement process is smooth and secure. The CDC account linked to your trading account holds the shares in an electronic format, making it easier to trade and manage your portfolio.
6. Managing Your Portfolio
Diversification
A key strategy in managing your stock portfolio is diversification. This involves spreading your investments across various sectors and companies to reduce risk.
Regular Review and Re balancing
It’s essential to regularly review your portfolio’s performance and make adjustments as needed. This might involve selling under performing stocks, buying new ones, or re balancing the portfolio to maintain your desired asset allocation.
7. Understanding Tax Implications
Capital Gains Tax
In Pakistan, capital gains tax (CGT) is applicable on profits earned from selling stocks. The tax rate varies depending on how long you’ve held the stock.
Dividend Tax
Dividends received from stocks are also subject to withholding tax. Understanding these tax implications is crucial for effective financial planning and maximizing your investment returns.