The Success of capital markets is based on Investors’ confidence over the transparency and fairness of its operations. The Karachi Stock Exchange Limited (KSEL), as a frontline regulator along with the Securities and Exchange Commission of Pakistan (SECP) being the Apex Regulator of capital markets, devised various mechanisms through its rules and regulations for the protection of Investors.
The investors are offered protection through:
• Developing new regulations and proposing changes in existing regulations for ensuring continuous protection against pre & post trade risks, improving Corporate Governance structure of TRE Certificate Holders and overall capital market operations.
• Devising effective compliance and enforcement mechanism, ensuring effective monitoring of brokers/ TRE Certificate Holders, listed entities and other concerned parties for compliance against applicable regulations and taking strict disciplinary actions against non-compliances, if any.
• Devising effective system for resolution of investors’ complaints lodged against TRE Certificate Holders through mediation, Arbitration and Appeal Procedures.
• Conducting sessions for creating awareness amongst investors for adopting prudent ways for dealing in securities and their rights for accessing certain necessary information pertaining to their trades from the TRE Certificate Holder.
The Default and Arbitration Wing at Karachi Stock Exchange Limited (KSEL) The Karachi Stock Exchange Limited (KSEL), being the frontline regulator, plays a proactive role in Ensuring that investors’ interest remains protected. Securing the interest of small investors is of prime importance to the Karachi Stock Exchange.
In order to keep a vigilant eye on investors’ issues and to provide a platform to the general public for voicing their concerns, Default and Arbitration Wing within Regulatory Affairs Department of KSE has been set up.
The Default and Arbitration Wing is responsible for ensuring that grievances/ complaints of the general public concerning investment and trading of securities are heard and redressed, in a quick and efficient manner. This Wing is also responsible for proposing disciplinary actions against defaulting brokers.
Since 2008, this Wing has been working under the supervision of General Manager/ Chief Compliance Officer of KSEL and has recommended disciplinary actions such as, expulsion/ forfeiture of membership/ TRE Certificate of 14 Brokerage Houses and settled claims valuing Rs.2.6 billion transparently.
This Wing liaison with Securities and Exchange Commission of Pakistan (SECP), National Accountability Bureau (NAB), and Federal Investigation Agency (FIA) in the matter of complaints lodged against the Member/ TRE Certificate Holder of KSEL.
Lodging a Complaint
It is strongly advised that the concern/problem should first be taken up directly with the concerned member of KSE. It is prudent to act promptly. If the Member fails to redress complainant’s grievance then the investor may lodge a proper complaint supported by documentary evidences to the Karachi Stock Exchange addressed to its Managing Director. The time required to resolve a dispute varies with the nature and complexity of each case and the availability of documentary evidences.
In order to enable KSE to act upon a complaint expeditiously and for quick follow-up, the complaint should necessarily contain all available information for contact purpose, such as complete postal address, telephone No, fax No., mobile No., e-mail. In addition, full details of the complaint be provided by filling the Complaint Form with all required supporting documents and annexure as mentioned in such form. Disputes to be referred for Arbitration
• Arbitration Regulations
• Claim Form
• Specimen of Undertaking to be furnished by the investor while applying for arbitration
List of Arbitrators
• Default & Arbitration Wing – Regulatory Affairs Department
• Panel of Experts
• Panel of TRE Certificate Holders
• Invester Protection
• Investor Complaint cell at KSE
• Lodging a Complain
• Online Complain Lodge Link
• SECP Complainant Form (English)
• SECP Complainant Form (Urdu)
• Status Report of Investors’ Complaint
• List of Brokers failing to comply with the Awards/Orders of Arbitrators
• List of Permanent Arbitrators Panel