Karachi, The Pakistan Stock Exchange Limited (PSX) has issued a notice reinforcing the importance of adherence to PSX Regulation 4.28 by all securities brokers. This regulation mandates that securities brokers must charge brokerage commission from their customers based on the standard range or scale provided in Annexure-III to Chapter 4 of PSX Regulations upon the execution of trades.

The notice emphasizes the necessity for securities brokers to maintain transparency and fairness by disclosing the aggregate rate of brokerage commission to their clients. This rate must fall within the specified commission range, ensuring that clients are fully informed of the financial implications of their transactions.

Further, the PSX has clarified that while securities brokers have the discretion to collect the disclosed brokerage commission in full or in parts, under no circumstances should the total exceed the maximum limit of 2.5% of the transaction value. Detailed disclosure of the commission, whether charged in full or periodically, must be clearly outlined to customers in the tariff schedule.

The PSX conducts regular inspections and reviews to ensure brokers comply with regulatory standards, particularly those safeguarding investor interests, such as brokerage commissions. Brokers found deviating from these standards face penalties, including fines and operational restrictions, under the relevant sections of PSX Regulations.

All securities brokers operating under the PSX are urged to strictly adhere to these regulations to ensure a transparent, fair, and compliant trading environment for their clients.