Section 16: Trading rights

16. Trading rights.—(1) An initial shareholder who is issued a TRE certificate under section 5 shall, if not already registered as a broker with the Commission, be entitled to be so registered not later than two years from the date of demutualization provided that he meets the fit and proper criteria: Provided that such TRE certificate holder shall commence business not later than six months from the date of registration as a broker. (2) A TRE certificate issued under section 5, may only be transferred once in a manner as may be prescribed: Provided that transfer of the TRE certificate by a registered broker shall result in the cancellation of his registration as broker. (3) Any fit and proper person who acquires a TRE certificate from an initial shareholder in accordance with sub-section (2), shall get himself registered as a broker not later than six months from the date of acquiring the TRE certificate, and shall commence business not later than twelve months from the date of acquiring the TRE certificate. (4) A stock exchange shall not issue new TRE certificates to any person 1[within a period of four years from the commencement of this Act] unless two-third majority of TRE certificate holders of a stock exchange decide otherwise. (5) After 1[the expiry of period specified in sub-section (4)], a stock exchange shall offer for issuance 1[of] fifteen TRE certificates each year 1[for the period of nine years] in the manner prescribed by the Commission (6) After 1[the expiry of the period specified in sub-section (5)], no restriction shall be placed on the issuance of TRE certificates by the stock exchange, and any person who meets the fit and proper criteria for registration as a broker shall be eligible to be issued a TRE certificate. (7) Any person who is issued a new TRE certificate shall get himself registered as a broker not later than six months from the date of issuance of such TRE certificate and shall commence business not later than three months from the date of registration as a broker. (8) After the date of demutualization, only a private company or a public company as defined in the Companies Ordinance, 1984 (XLVII of 1984) shall be eligible to obtain registration as a broker on a stock exchange: 1Subs. and ins. by Act XXII of 2015, s. 3. Provided that any TRE certificate holder who is registered as a broker on a stock exchange on the date of commencement of this Act shall not be required to convert in to corporate brokerage house till one year from the commencement of this Act. Explanation.—For the purpose of this sub-section the expression “Corporate brokerage house” means a private company or a public company which is registered as a broker. (9) All Corporate brokerage houses shall comply with the provisions of the Code of Corporate Governance issued by the Commission as amended from time to time. (10) Except as provided in sub-section (2), all TRE certificates shall be nontransferable. (11) Failure of a person, holding a TRE certificate including an initial shareholder, to get himself registered as a broker or commence business within the different periods specified in this section, or in the case of an initial shareholder, to transfer the TRE certificate within two years from the date of demutualization, shall result in the lapse of such TRE certificate. (12) The Commission shall prescribe the manner, form and procedures for the transfer and issuance of any TRE certificate in any stock exchange. CHAPTER-IV INTEGRATION

Effective date: 2012-01-01

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