Rules and Regulations
All transactions under this agreement shall be subject to and governed by Rules and Regulation of the Stock Exchanges in Pakistan, the provisions of the Central Depositories Act 1997 the CDC Regulations and the Securities and Exchange Commission of Pakistan ordinances in force from time to time.
Provision of Services
Darson will provide to the client general dealing/brokerage services in the following investment categories/ securities:
All quoted and unquoted securities traded on the stock exchange of the Pakistan and/ or through the centre depository system.
Mutual Fund Certificates, Unit Trust Certificates, NIT Unit, Term Finance Certificates, Modarabas, securities/ bonds issued by the state turn institutions.
Others as and when available and permissible.
Order Entery
During the term of this contact, the client may from time to time place orders for sale / purchase of securities only either himself / herself or by his / her authorized representative. Incase the client is a company, institution or firm, all orders shall be placed by its authorized directors / officers / partners as conveyed to Darson in writing. All such orders shall be placed orally or in writing.
If Darson enters into a transaction upon the instructions of the authorized directors / officers / partner and shares / securities or funds are not delivered as and when due, the client will indemnify Darson in full against all costs, expenses, liabilities and losses Darson may incur and claims which may be made against Darson as a direct result of such failure.
ORDER EXECUTION AND CONFIRMATION
Darson will endeavor to purchase or sell the shares/securities within the limits of the prices that may be notified by the client. However, Darson does not guarantee or ensure that the transaction will be materialized within such notified limits. In case the client notifies a limit for sale /purchase, Darson will be entitled to deal only at that limit. The clients shall have no objection, if Darson executes the order directly with some other clients of the house. Darson shall report all client-to-client transaction to the relevant exchanges where the transaction takes place.
Darson shall make all transaction of purchase/sale or trades during the trading hours of the exchanges. Once an order is executed, Darson shall confirm the transaction by a confirmation of purchase or Sale, which will be sent to the client on the same day after the close of trading or in any case on the next working day, with full particulars of the transaction.
RIGHT TO OBTAIN ACCOUNT STATEMENTS
The client has a right to obtain a copy his account statements, ledger report, CDC report etc under official seal and signature of authorized personal of Darson form time to time. In case of any discrepancy in any of the statements, the client may either inform Darson immediately or within 90 days to the Member client Arbitration committee for the settlement of dispute.
PRESUMPTIONS OF RECEIPT OF COMMUNICATIONS
Communication may be sent to the client at the address of the client or at any such address as the client may hereafter give Darson in writing, and all communication so sent, whether by mail, telegraph, messenger or otherwise, shall be deemed given to the client personally, whether actually received or not Settlement
A-PURCHASE Contract
In case of purchase contacts, deliveries will be made to the client sub-account in CDC on the scheduled delivery dates mentioned in the memorandum of confirmation of purchase. In case of default in payment by the client, Darson will sell shares/securities of the client in the market and will be entitled to recover the loss, if any, from the client.
ii- in case of spot transactions, settlement data will be the same. As such, the client should make payment on the day of the transaction.
iii- It is specifically agreed and understood that under no circumstances whatsoever Darson will allow any credit facilities or make purchases for the client on credit basis.
iv- Darson shall not be liable for delays in the deliveries of any shares / securities caused by any corresponding delays on account of any counterpart, agent or representative selected by Darson for the
purchase of such shares / securities or for any other reason beyond Darson’ s reasonable control.
B- SALE CONTACT
i- In case of sale contract, the client shall deliver the shares / securities to Darson in accordance with the terms of the confirmation of Sale. Physical Share Certificates will not be accepted for effecting delivery unless the relevant companies duly verify these or until these are transferred to the CDC. Darson shall not be responsible for any loss or manage etc suffered by the Client due to late delivery of Share certificates by the client or due to circumstances beyond Darson’s control. Any loss or damage etc, suffered by Darson due to late delivery of share certificates by the client will be born by the client.
ii- The proceeds of the shares/securities sold on account of the client shall be paid to the client with the terms of the confirmation of sale.
iii- Payment will be made by crossed cheques or by pay order. Incase the client has authorized Darson to maintain its account with Darson, the sale proceeds of the shares/securities shall be credited, to the client’s account under intimation to the client.
Client’s liability on refusal to execute purchase/sale contract. In the event of client’s refusal to obtain delivery and to make the payment against any purchase contract or refusal or delay in effecting delivery against any sale contract, the client shall be liable to compensate Darson for all losses and damages, including the cost as well as legal expenses which Darson may suffer or sustain on account of the
Client’s delay or default as mentioned above.
MARGIN REQUIREMENTS
The client shall at all times maintain the as agreed or required by Darson for exposure against the outstanding open purchase / sale position. If the client fail to maintain the specified margin level. In addition, Darson shall have the authority to liquidate the shares held by it for security purposes to recover the amount due from the client because of losses incurred in his/her account.
AGREEMENT TO ARBITRATE CONTROVERSIES
It is agreed that any dispute / controversy between the client and Darson out of the stock exchange business under this agreement shall be referred to Member Client Arbitration Committee constituted by the Karachi Stock Exchange or the Lahore Stock Exchange, where the client has been doing business with Darson. Any decision by the Arbitration Committee shall be binding on the parties subject to provision of the prevailing laws.
AGENTS
If the client, herein called first party, is acting as an agent of or an intermediary for any other person(s), herein called second party, Darson will only treat the first party as a client, if it gives a complete authority to the first party to act on his behalf with Darson for all practical purposes. This letter of authorized will have to be submitted, before Darson allows the second party to be its client.
TELEPHONE MONITORING
Darson may record telephone calls tasking place between its staff and the client for the sole purpose of verification of order execution and securities transaction. Darson may use such recordings as evidence, and the client hereby consents to the admissibility in evidence of such recording, in any legal proceeding pertain to securities transactions between Darson and the client.
RESEARCH RECOMMENDATIONS
Darson makes it a point that all our market research and investment recommendation are aimed at providing objective and unbiased information. However, these are our opinion only and we do not guarantee the accuracy of our forecasts and recommendations. Darson, its staff and directors shall not be liable in any manner whatsoever to the client if they suffer any losses due to our recommendation.
ENTIRE AGREEMENT
The application and these terms and conditions represent the entire terms on which Darson will undertake business with the client and on alteration will have effect unless issued or agreed by Darson in writing.
TERMINATION
Darson may terminate this agreement at any time without assigning any reason. The client may terminate this agreement and close his account with Darson at any time when it owes on liability or obligation whatsoever to Darson under or relation to this agreement. Upon termination, Darson will deliver any shares/securities or money held by it to the client after deduction of any outstanding charge and expenses. The parties will complete any unsettled transaction.