To trade in the stock market through registered brokerage house/broker, an investor has to open a trading account with the broker/brokerage house.
- Account opening forms generally can be obtained from the office of the registered brokerage house/broker or their branch office.
- Account opening form of the brokerage houses must include the basic clauses as mentioned in the Standardized Account Opening Form which is a part of the General Regulations of the Exchanges (these regulations are available on website of the exchanges).
- While filing up the Account Opening Form, an investor is advised to read carefully all the instructions printed therein, and if there is any uncertainty regarding any clause it is important to always consult the brokerage house/broker. If the query is not addressed satisfactorily; the investor can contact the Exchange's management and/or the SECP.
- While filling the Account Opening Form investors are advised to be vigilant.
- Investor should never sign any blanket authority allowing the brokerage house/broker and/or agent to transact on their behalf, unless and until he/she can clearly identify the benefits/specific purpose of such authority.
- A copy of certified and duly signed copy of Account Opening Form should be kept for record.
- Remember, that the Sub Account Opening Form does not include a general purpose authorization to the brokers to take care of their client’s securities. Nevertheless, specific authorization for managing the securities may be given out by the client.