PUBLIC AWARENESS MESSAGES FOR INVESTORS
Message 1:
Always deal with a licensed broker registered with SECP
Guidelines to follow
- You can verify registration by visiting Pakistan Stock Exchange website: https://www.psx.com.pk/
- License can be verified through Jampunji SMS license verification service; for verification through SMS, send LV
to 8181
Message 2:
Trade only through your own account with broker and CDC
Guidelines to follow
- Carefully complete account-opening forms and obtain copies for your record.
- Ensure that your contact details such as address, email address and mobile phone are correctly recorded in the account opening form
Message 3:
Never authorize a third party to operate your account, always make payments to broker by crossed cheque and obtain receipts
Message 4:
Always maintain documentary record of your transactions to protect your hard-earned money
Guidelines to follow
- Do not sign any document without fully understanding its terms and conditions.
- Carefully complete your account opening forms and obtain copies for your record.
- Never forgo obtaining all documents of transactions in good faith.
- Give orders either in writing or on recorded telephone line of the broker
- Always obtain periodic statements of accounts from broker and Central Depositary Company (CDC), and compare them with your records.
- Obtain copy of schedule of applicable fee and charges from the broker for your record.
- You are at risk if you are not receiving “trade confirmation” within 24 hours from your broker of all trades executed in your account.
Message 5:
Never transact on ’tips’, insider news, rumors or media report
Guidelines to follow
- Always check financial statements of a company prior to making investment.
- Do not transact, based on media reports, rumors, tips, or promises of guaranteed or high return.
- Take your time to research the stock before you invest. Never trade on social media tips where the recommendation is claimed to be based on insider or confidential information.
- Exercise extreme caution regarding social media post/messages that solicit an investment or provide information about a particular share.
Message 6:
Always maintain custody and complete control over your securities
Guidelines to follow
- Open an account with CDC Investor Account Services (IAS) and subscribe to CDC online services for authorizing all portfolio transfers from your account.
- Use CDC Direct Settlement Service and settle your trades through IAS Account.
Message 7:
The investors are warned to avoid making an investment decision based on research report issued by a person or entity not notified by the SECP
Guidelines to follow
- The list of research entities duly notified with SECP is available on SECP’s website.
- You may verify notified research entities with the Jamapunji SMS service by sending ;REV
to 8181
Complaints
In case of any compliant, immediately lodge it with Pakistan Stock Exchange. You may lodge your online complaint with SECP through its website (https://sdms.secp.gov.pk/)
