COMSATS University Islamabad, Lahore Campus

Presentation 1 – Spring 24
Course Title Financial Markets and Institutions
Course Code FNC712
Credit Hours 03
Semester Spring 24
Resource Person Sadaf Ehsan
Total Marks 4
Class RBA

Question 1

1. Main brokerage firms in Pakistan.

Currently 532 brokerage firms in Pakistan and in which some are Suspended and
some are non-active and 78 firms are facilitating online account opening.
In Pakistan, some of the main brokerage firms include:

AKD Securities
Arif Habib Limited
Foundation Securities
JS Global Capital Limited
KASB Securities

2. Reason for selecting your brokerage firm.

Arif Habib Limited is one of the leading brokerage firms in Pakistan with a strong
reputation in the financial market. Here are some reasons why we might consider
selecting Arif Habib Limited as our brokerage firm:
Reputation and Experience: Arif Habib Limited has a long-standing presence in the
Pakistani financial market, with decades of experience in providing brokerage
services.

Diverse Range of Services: Arif Habib Limited offers a diverse range of services
beyond traditional brokerage, including equity brokerage, commodities brokerage,
research and analysis, investment advisory, corporate finance, and wealth
management services.

Advanced Trading Platforms: The firm provides access to advanced trading

platforms equipped with real-time market data, research reports, analysis tools, and
 order management capabilities. These platforms are designed to cater to the needs of
both novice and experienced traders, enabling efficient and informed decision-
making.

Customer Service: Arif Habib Limited is known for its responsive and client-
focused customer service. They have dedicated support teams to assist clients with
account management, technical issues, trading inquiries, and other concerns, ensuring
a smooth and hassle-free trading experience.

Research and Analysis: The firm offers robust research and analysis services,
including market insights, stock recommendations, economic analysis, and sector-
specific reports. This valuable information can help investors make informed
investment decisions and navigate volatile market conditions more effectively.

Regulatory Compliance: Arif Habib Limited operates in compliance with regulatory

standards set by the Securities and Exchange Commission of Pakistan (SECP) and
other relevant authorities. This commitment to regulatory compliance and
transparency enhances trust and credibility among investors.

Competitive Pricing: While brokerage fees are an important consideration, Arif

Habib Limited offers competitive commission rates relative to other brokerage firms
in the market, ensuring cost-effective execution of trades.

3. How to open an account in Pakistan stock exchange.

To open an account in the Pakistan Stock Exchange (PSX), you typically need to
follow these steps:

Choose a brokerage firm: Select a brokerage firm that suits your needs and
preferences.
Fill out account opening forms: Provide necessary information and fill out account
opening forms provided by the chosen brokerage firm.
Submit required documents: Submit required documents such as a copy of your
CNIC (Computerized National Identity Card), proof of income, bank account details,
and any other documents specified by the brokerage firm.
Account verification: The brokerage firm will verify the provided information and
documents.
Fund your account: Deposit the initial investment required to open a trading account
into the brokerage account.

4. Initial investment is required to open a trading account.

You can open an account with Rs. 25,000/-.

5. What documents or things do you require to open a trading account?

The list of documents needed to open an account is:
 Account Opening forms duly filled and signed
 Attested copies of CNIC/Passport of applicants and nominee
  Proof of income (such as salary slips, bank statements, or tax returns)
 Bank account details
 Cheque for minimum payment in favor of Arif Habib Limited
 Passport size photographs
 Zakat Declaration Form on stamp paper of Rs.50/- (Optional)

6. Commission fee charged by a brokerage firm.

Arif Habib Limited offers the most competitive rates in the industry; minimum
commission is 3 paisa per share on shares valued up to Rs. 50.

7. Other transaction costs involved in stock trading.

They include broker commissions, transaction taxes (Capital value tax CVT (buyer),
Capital gain tax CGT(seller), Sindh sales tax SST) stamp duties, and exchange fees.

8. If you do not have an income declaration or earning source, then how you can
open your account?
If you do not have an income declaration or earning source, you may still be able to
open a trading account by providing alternative documentation or fulfilling certain
requirements specified by the brokerage firm.

9. Tax adjustment or tax charges associated with stock transactions.

There are several taxes and charges applicable on shares trading at PSX; the basic
ones are listed as follows:
CGT (Capital Gains Tax) [Tax Return Filers: 15%, Tax Return Non-filers: 20%],
Brokerage Commission [varies amongst brokerage firms], and CVT etc.

10. Is there any difference of tax adjustment between taxpayer and non-tax payer.
CGT (Capital Gains Tax) [Tax Return Filers: 15%, Tax Return Non-filers: 20%]

You need to visit the selected brokerage firm and the mention the commission according to it.