Frequently Asked Question - Invest and Finance Securities Limited





Frequently Asked Questions How do I open an account? What is the difference between the “Individual Account”, “Joint Account” and “Institutional Account”? What is a minimum deposit requirement in IFSL? What is a margin deposit? Where are my funds held? Are there any fees other than brokerage commission on my account? Can I authorize someone else to operate my account on my behalf? How can I place my orders? What and where can I trade? Am I able to change or cancel an order? How will I be notified of trade executions? What is the Central Depositary Company (CDC)/Central Depository System (CDS)? How do I transfer my holdings in the CDS to a broker? How can I collect dividends on my shares? How much does it cost to buy and sell shares? When and how will I receive my trade contracts and account statements? What taxes will I be liable to as an equity investor? How do I open an account? Account opening with Invest & Finance Securities Limited (IFSL) consists of the following simple steps: Read, understand and accept our Terms and Conditions before signing an application form. Submit an Individual or Joint Account Application in any one of the following ways: a. At our Head Office/Branches/ Franchises or through one of our authorized sales representatives; or b. Download forms from this website, print, complete, and mail the web Individual/Joint Account Application to our mailing address; or c. Request an Account Application Pack through the email link available on “Contact Us” menu on this website. Enclose the minimum deposit instrument of PKR 50,000 along with the filled application form. The deposit may be in the form of shares registered in your name or crossed cheque, through pay order, demand draft in the favor of Invest & Finance Securities Limited. The Application should be mailed to our following address: Fresh Accounts Invest & Finance Securities Limited. 12th Floor, Corporate Tower, Technocity Building, Hasrat Mohani Road, Off: I.I. Chundrigar Road, Karachi, Pakistan. Upon receipt of completed application forms, and the minimum deposit, your account will be opened and activated. We inform you through a letter that contains your Account Name and Number and the name of your IFSL Relationship Manager to enable trading through the account. Back to top What is the difference between the “Individual Account”, “Joint Account” and “Institutional Account”? The following types of accounts can be opened: Individual account Joint account for two persons Institutional accounts for joint stock companies, mutual funds, trusts etc. (must be opened in person at our offices) Individual Account is 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. Joint Account is the account in the name of two persons. Trading instructions will be accepted from either person, or their authorized representative. All trades will be registered in the name of both account holders. Back to top What is a minimum deposit? The account holder must maintain a minimum deposit in the form of cash and/or shares at all times. Our current minimum deposit requirement is PKR 50,000. Back to top What is a margin deposit? Clients allowed by IFSL 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 qualified stocks. Back to top Where are my funds held? Your cash balance will be held by IFSL, and it will be reflected in your account statement. Back to top Are there any monthly fees on my accounts? At present there are no such charges. Back to top Can I authorize someone else to trade in my account on my behalf? Yes. This can be granted by nomination through a Letter of Authority (LOA). A LOA addressed to Invest & Finance Securities Ltd. is provided with the account application form. Back to top How can I place my orders? Orders can be placed through logging on to your user account through the internet by a simplified trading screen or through the telephone call to our assigned retail trades executor. Back to top What and where can I trade? You can trade in all stocks listed on the Karachi Stock Exchange (KSE). Back to top Am I able to change or cancel an order? An order can be changed or cancelled through your web based user account or by informing the assigned trade executor, provided the order has not been executed till that time. Back to top How will I be notified of trade executions? You can watch the status of the order through the web-based user account. Also, an email confirmation will be sent to you after the completion of back office processing through the automated software. Alternatively, you can also make a telephone call to the assigned trade executor to confirm trade executions. Back to top What is the Central Depositary Company (CDC)/Central Depository System (CDS)? The CDC is a company that operates an electronic share register called the Central Depositary 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 are required to open a CDS sub-account with IFSL, for which a form is included in the account application booklet. Back to top How do I transfer my holdings in the CDS to a broker? 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. Back to top How can I collect dividends on my shares? *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. In the case of credit to your Sub-Account with us, we will transfer these shares upon their receipt from the CDC. *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. Back to top How an investor can apply for Right shares? If an investor is eligible for the right shares, he/she will receive a Right allotment letter at his/her mailing address from the company/registrar. The customer will then be required to deposit the Right allotment letter to his/her Bank (if the right are in the name of the customer, then the same will be directly subscribed. Or else if the rights are not in the customer's name, then it must be verified by the company/registrar). The Bank will debit the amount against the subscription of the right shares from the bank account. Please note; on the backside of the right allotment letter page 3, the customer may write the Brokerage house participant Id and their CDC Sub account number, where he/she wishes to receive the ordinary shares. The right shares after converting into ordinary shares will be credited in his/her mentioned participant account. If the above details are not mentioned, the customer will receive the right shares at his/her mailing address in physical form. Right shares are converted into ordinary shares and appear in your Trade account after about 5-6 weeks from the date of subscription. Back to top How much does it cost to buy and sell shares? Our current commission structure is provided with the Account Application. Back to top When, and how, will I receive my trade contracts and account statements? Trade contracts are emailed to the client's given email address after back office processing on the same day. Clients will also get a monthly statement of account within three days of day of settlement for the preceding month through email. The account statement contains information on the current cash position, stock portfolio and outstanding transactions. Back to top What taxes will I be liable to as an equity investor? The following taxes have been levied on equity investors in the Finance Bill 2004-05: Capital Value Tax (CVT) @ 0.01% on the purchase value of shares. Withholding tax @ 0.005% on the sale value of shares. Capital gains income from equity trading is tax exempt up to June 2008. Dividend income is subject to withholding tax; the paying company deducts the tax at source at various rates based on the recipient's status. Certain Muslim investors are subject to Zakat (an Islamic wealth tax) on the value of their equity holdings as on the first day of the Holy Month of Ramadan. The paying company deducts the Zakat amount from the next dividend payment to shareholders. Please note IFSL does not purport to provide tax advice. For further details you should seek professional tax guidance. Back to top Security Information What safeguards protect my account? There is presently no statutory government established fund that compensates investors for monetary loss suffered through broker defaults. The KSE has established an Investors Protection Fund under the Investors Protection Fund Regulations. Details may be obtained from the KSE. The choice of broker is an investor's primary safeguard. At IFSL, client interest is protected through: Greater self-accountability of IFSL as a public listed company Large capital of the company In-depth research Efficient execution Internal controls/compliance Quality of human resources Back to top Frequently Asked Questions for Shareholders Information When does your fiscal year end? When do you announce your quarterly financial results? Where can I find recent IFSL press releases? Where can I find investors presentations? Who is IFSL independent auditor? Where can I find additional information about IFSL? When did IFSL become a public company? What is IFSL stock symbol? Which exchanges are IFSL common stock listed on? Who is the transfer agent for IFSL common stock? Who should I contact for a change of address? How do I get my dividend payment? Who should I contact if I have not received my dividends? Where can I find information on IFSL latest financial results? How can I obtain a copy of your Annual Report? When does your fiscal year end? Our fiscal year ends June 30th. Back to top When do you announce your quarterly and annual financial results? Our quarterly and annual results are normally announced within the stipulated time frame given by the exchange, which 30 days after the end of period for quarterly 60 days in case of half yearly and 90 days after the end of annual results. Back to top Where can I find recent IFSL press releases? Recent press releases are updated in Investors’ Relations page. Back to top Where can I find investor presentations? Recent Investors Presentations are updated in Investors’ Relations page. Back to top Who is IFSL's independent auditor? Riaz Ahmed Saqib Gohar & Company, Chartered Accountants have been appointed as auditor of IFSL for the 2008 fiscal year. Back to top Where can I find additional information about IFSL? Additional information about IFSL can be found in the About Us, Services and through Site Map links sections of the Web site. Back to top When did IFSL become a public company? IFSL commenced trading on the Karachi Stock Exchange on November 27, 2006. Back to top What is IFSL stock symbol? Our stock symbol and trade commencement date will be decided by the exchange upon the completion of the IPO. Back to top Which exchanges are IFSL common stock listed on? Currently, the listing process for IFSL is under progress. It will be listed on the Karachi Stock Exchange (KSE) upon the completion of the regulatory procedure. Back to top Who is the share registrar for IFSL's common stock? Technology Trade (Private) Limited is the official share registrar of IFSL for year 2008. Technology Trade (Private) Limited Dagia House, 241-C, Block-2, P.E.C.H.S., Off: Shahrah-e-Quaideen Karachi. Pakistan. Back to top Who should I contact for a change of address? For a change of address, registered shareholders should contact our share registrar, Technology Trade (Private) Limited, as outlined above. Back to top How do I get my dividend payments? Dividend payments are made to the registered holder of the shares. If the shares are registered in your name, a dividend warrant will be mailed to the registered address. If the shares are held in a brokerage account, the brokerage firm will pay the dividend directly into your account, if selected by you in your account opening form with the brokerage. Back to top Who should I contact if I have not received my dividends? If the shares are registered in your name, please contact our share registrar, Technology Trade (Private) Limited. If the shares are held in a brokerage account, please contact your investment advisor. Back to top Where can I find information on IFSL's latest financial results? Please visit the “Investors Relations” page on this website. Back to top How can I obtain a copy of your Quarterly or Annual Reports? Quarterly and Annual Reports can be obtained from “Investors Relations” on this website in pdf format. Please visit website www.acrobatreader.com for getting free Acrobat Reader. Back to top

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