Pakistan Stock Exchange Prescribes Standard Range Of Brokerage Commission

Pakistan Stock Exchange (PSX) Monday issued a notification for implementation of standard range/scale of brokerage commission with effect from October 14, 2019

ISLAMABAD, (UrduPoint / Pakistan Point News - 14th Oct, 2019 ) :pakistan stock exchange (PSX) Monday issued a notification for implementation of standard range/scale of brokerage commission with effect from October 14, 2019.

According to the notification, the exchanged prescribed the commission range of 3 paisa per share or 0.15% of the transaction value (whichever is higher) up to 2.5% of the transaction value, besides prescribing certain flexibilities and exemptions on nature of trades and executors.

The psx and Securities and Exchange Commission of Pakistan (SECP) had observed that many brokerage houses were charging nominal or zero commission rates, which was adversely affecting true competition and creating a disadvantage for market participants in the form of disparity in service standards.

This implementation of a standard range of commission would be helpful in enhancing quality standard of brokerage services including research, encouraging expansion of distribution network for brokerage services, improving proficiency and technical infrastructure of brokers and maintaining minimum level of governance and regulatory requirements.

All these ensuing reasons would contribute to the economic progression and benefit investors at large in the long run. As such, PSX, in exercise of its statutory power u/s 7(1)(w) of the Securities Act, 2015 to make regulations relating to brokerage and other charges and after following the due process including extensive consultations with all the stakeholders and with the approval of its board and SECP introduced the standard range/scale of brokerage commission.