PSX may allow brokers to expand sales, marketing outreach

Web DeskWeb Editor

30th Jun, 2021. 05:13 pm
PSX

KARACHI: The Pakistan Stock Exchange (PSX) is likely to allow securities brokers to open customer centres and utilise the sales force and distribution channels of their associated/holding companies for marketing their business across the country, a statement said on Wednesday.

Currently, the securities brokers are required to open the branch offices and have it registered under the PSX regulations, which involves time, cost and compliance with the eligibility requirements for the appointment of branch head/manager and operations of the branch.

The PSX has been receiving requests from some of the securities brokers for allowing establishment of facilitation centres at different locations of the country, in addition to opening of new branch offices.

The securities brokers intend to establish such facilitation centres, as they are cost effective, compared to opening of branch offices and would help them penetrate into the remote areas of the country, resulting in an increase in the number of customers and expansion of the capital market.

In addition, the PSX is also envisaging to allow securities brokers to market their brokerage business and products through the sales force and sales offices and distribution channels of their associated or holding companies. The associated/ holding companies may include insurance companies, banks, mutual funds, etc.

According to a concept paper prepared by the bourse, the permission to utilise such a facility will allow the securities brokers to expand their business outreach, enhance customers and bring new investment without incurring significant cost on appointing new sales force and establishing new sales offices and branch offices.

The PSX is circulating this concept paper for soliciting market feedback and suggestions.

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