KARACHI: The Pakistan Stock Exchange (PSX) will likely allow stockbrokers to open customer centers and use the sales force and distribution channels of their associated companies / holdings to market their businesses across the country , a statement said on Wednesday.
Currently, stock brokers are required to open branches and register them under PSX regulations, which involves time, cost and meeting the eligibility requirements for the appointment of the head / manager of the branch. branch and branch operations.
PSX has received requests from some of the stock brokers to allow the establishment of facilitation centers in different locations across the country, in addition to the opening of new branches.
The stockbrokers intend to establish such facilitation centers, as they are cost effective compared to opening branches and would help them to penetrate into remote areas of the country, which would lead to an increase in the number of customers and an expanding capital market. .
In addition, PSX is also considering allowing stockbrokers to market their brokerage business and products through the sales force and sales offices and distribution channels of their associated companies or holding companies. Associates / holding companies can include insurance companies, banks, mutual funds, etc.
Authorization to use such a facility, according to a concept paper prepared by the exchange, will allow stockbrokers to expand their business reach, improve their customer base and make new investments without incurring significant costs for the company. appointment of a new sales force and establishment of new sales offices.
PSX is circulating this concept paper to solicit comments and suggestions from the market.