Account opening information
Opening an account with Taurus Securities Limited (TSL) consists of the following simple steps:
1.You read, understand and accept our Terms and Conditions before submitting an application.
2.You submit an Individual or Joint Account Application in any one of the following ways:
a. At our Offices, or through one of our sales representatives; or
b. Download, complete and mail the web Individual/Joint Account Application to our mailing address; or
c. Request an Account Application Pack through the mail
3.You enclose the minimum deposit along with your application. The deposit may be in the form of shares registered in your name, or cheque or a combination of both.
4.The Application should be mailed to our following address:
Taurus Securities Ltd.
Suite 604, 6th Floor
5.Upon receipt of fully completed application forms, and the minimum deposit, your account is opened and activated. We inform you through a letter that contains your Account Name and Number and the name of your TSL Relationship Manager.
6.You start trading in the account.
An account for one person. Trading instructions will only be accepted from the account holder or his/her authorized representative. All trades will be registered in the name of the account holder. Payments will be made as per current TSL practice.
An account for two persons. Trading instructions will be accepted from either person, or their authorized representative. However, all trades will be registered in the name of both account holders. Payments will be made as per current TSL practice.
Account holders must maintain a minimum deposit in the form of cash and/or shares at all times. Our current minimum deposit requirement is Rs25,000. You can make the minimum deposit with any combination of the following:
- By cheque, funds transfer, demand draft or payment order, in favour of Taurus Securities Ltd.
- By transfer of shares into our account with the CDS. (For shares deposit you will need to provide us with CDS transfer instruction details in the Individual/Joint Account Application).
Clients allowed by TSL to trade in excess of their cash or portfolio balances are required to maintain a margin deposit in order to cover the level of trading exposure. The margin is the client’s equity in the value of the portfolio or trading position. The client’s trading limit is set at a multiple of the margin deposit. Margins can be in the form of cash and/or shares. However, margin shares must be on our list of marginable stocks.
Your cash balance will be held by TSL, and will be reflected in your account statement.
The following types of accounts can be opened:
- Individual account
- Joint account
- Institutional accounts for joint stock companies, mutual funds, trusts etc. (must be opened in person at our offices)
The complete set of account opening forms consists of:
1.Individual/Joint or Institutional Account Application.
2.Account Opening Form for Sub-account in CDS.
The above forms require you to provide basic client information and trading instructions. These details are meant to help facilitate client trading and allow beneficiaries to claim investments conveniently.
In addition to basic information, we require some form of documentary identification: for retail accounts this is a copy of your attested CNIC (or passport); for joint stock companies this includes copies of founding documents, board resolution etc., in compliance with domestic law.
At present there are no such charges.
This can be granted by nomination through a Power of Attorney (POA). A POA addressed to Taurus Securities Ltd. is provided with the account application pack.
You can begin trading as soon as we notify you that your account has been activated and is ready for trading. A Relationship Manager (RM) will be allocated to look after all your trading needs including research, order execution and account settlement. You simply have to contact your RM in order to begin trading. The name and contact details of your RM will be included in the account activation notification.
Orders can be placed through a simple telephone call to your RM. All client orders received at our offices in Karachi and Peshawar are routed to the Karachi trading room and executed on the Pakistan Stock Exchange.
Your payments/delivery to us
You are required to transfer funds to Taurus against purchases, and deliver shares against sales, at least one business day before the settlement date notified in the trade contract sent to you. Payments may be made by cheque, funds transfer, demand draft or payment order in favour of Taurus Securities Ltd. Payment instruments should be mailed to our following address:
Taurus Securities Ltd.
Suite 604, 6th Floor
Our payments/delivery to you
For shares settled through the CDS, Taurus will normally deliver purchased shares to you within one business day from the settlement date, subject to receipt of shares from the NCCPL. Shares traded in paper form are normally delivered within two business days from the settlement date, subject to receipt of shares from the Clearinghouse of the PSX.
Payment of sales proceeds is normally made one business day from the settlement date, upon receipt from the NCCPL. Unless we receive other instructions from you, we will credit sale proceeds to your account balance with us, and deliver purchased shares into your CDS Sub-Account/ Investor Account. All payments will be made by crossed cheque only. Cheques will be issued in favour of the individual account holder, while joint account payments will be made jointly, or to either account holder, in accordance with instructions given in the application form.
You can trade in all stocks listed on the PSX. On a discretionary basis, TSL may be able to arrange trades in other tradable securities through third parties. In the case of paper shares, please note that you can only sell those shares that are either registered in your name, or purchased through TSL.
Yes, but the order will only be placed the next trading day. Current PSX rules do not allow after hours trading.
Yes, an order can be changed or cancelled by informing your RM, provided the order has not been executed.
Your RM will notify you of trade executions through same day verbal confirmations, followed by a contract mailed on the next business day.
The CDC is a company that operates an electronic share register called the Central Depository System (CDS). The CDS eliminates the need for physical movement of share certificates. It has also solved investor problems related to stock handling on the settlement date, registration of shares, and exercise of corporate action benefits. Clients availing of our custodial services can open a CDS sub-account with Taurus, for which a form is included in the account application pack. Alternatively, they may wish to directly open an Investor Account with the CDC; for details, contact the CDC at: 0800-23275-900 ; website: www.cdcpakistan.com.
You are required to transfer your holding to the broker’s CDS account. If you have a CDS Investor Account you can issue transfer instructions. Alternatively, you can instruct your custodian/existing broker holding shares on your behalf to transfer those shares. You will be able to trade those shares once the receiving broker acknowledges receipt.
Stock dividends (bonus shares): The issuing company will credit your Investor Account/Sub-Account with the CDS by the number of shares you are entitled to.
Cash dividends: The issuing company will dispatch the dividend warrant directly to your mailing address provided in the CDS Investor Account/Sub-Account opening form. Alternatively, if you have an arrangement with a bank providing custodial services, you can also give a mandate to that custodial bank to collect dividends on your behalf. You will need to complete the relevant sections of the Account Opening Form for Sub-Account in CDS for this purpose. (Tick ‘yes’ to the question on Dividend Mandate, and fill in particulars for Disposal of Dividend Warrants)
Our current commission structure is provided with the Account Application.
Trade contracts are mailed to the client’s given correspondence address the next business day.
A summarized account statement is provided to clients on a periodic basis by e-mail, fax or courier as per client preference. The summarized account statement contains information on the current cash position, stock portfolio and outstanding transactions.
- Please note TSL does not purport to provide tax advice.
For further details you should seek professional tax guidance.
- Email Customer Care at email@example.com or call (021) 111–Taurus (111– 828-787) Ext. 220 or Direct: (0213) 35638036 & (0213) 5684228
You will need to open an account with a broker licensed to trade on the exchange on which your stock is listed (or on your preferred exchange if the stock has more than one listing).
Yes, provided they are still traded in paper form in the market. In the Pakistan market, certain shares are still traded in paper form despite the introduction of an electronic share register, the CDS. In order to tender valid delivery, paper shares must be accompanied by a signed transfer deed duly verified by the registrar of the issuing company.
You are required to deliver paper shares accompanied by verified transfer deeds to your broker for induction into the CDS. Your broker will perform all necessary formalities on your behalf for a fixed fee that covers the cost of the share transfer fee, CDS deposit fee and other incidental charges. You can trade those shares once your broker provides you an induction notification.
There is presently no statutory government established fund that compensates investors for monetary loss suffered through broker defaults. The PSX has established an Investors Protection Fund under the Investors Protection Fund Regulations. Details may be obtained from the PSX.
The choice of broker is an investor’s primary safeguard. At TSL, client interest is protected through:
- In-depth research
- Efficient execution
- Integrity/client confidentiality
- Institutional capital backing
- Internal controls/compliance
- Quality of human resources