FAQ’s

/FAQ’s
FAQ’s2019-04-18T10:55:37+00:00
What does Fair edge Securities Pvt. Ltd do?2019-04-18T10:56:43+00:00

FES is a corporate investment house that serves investment needs of corporate and retail clients in the capital market. FES is a TRE Certificate holder of the Pakistan Stock Exchange.

What are shares/stocks?2019-04-18T10:56:47+00:00

Shares represent ownership in a company. They entitle holders to a claim on company profits to the extent of shares purchased.

How does the stock market function?2019-04-18T10:57:54+00:00

The stock market is an electronic market where shares/securities of listed companies are traded through members of the stock exchange. The market functions on the basic principle of demand and supply.

What are listed companies?2019-04-18T10:58:11+00:00

Companies which are listed at the stock exchanges and their shares are available to the general public for trading at the stock exchanges are called listed companies.

What are dividends?2019-04-18T10:58:26+00:00

A company distributes profits to its shareholders via dividends, usually in form of cash or bonus shares.  Stable companies offer regular dividends to their shareholders while high growth companies provide the opportunity to benefit from capital gains.

What is the risk associated with investment in stock market?2019-04-18T10:58:56+00:00

Risks are associated with all businesses including stocks and commodities, however, through carefully executed decisions, risks can be managed.

What is the minimum investment requirement?2019-04-18T10:59:56+00:00

The minimum investment required for stock market is Rs. 50,000.

What is the period of settlement?2019-04-18T11:00:04+00:00

Settlement of shares is done at T+2, meaning, your transactions will realize in trade date plus 2 business days.

What taxes are charged to stock market investments?2019-04-18T11:00:14+00:00

Capital value tax amounting to 0.01% is charged upon purchase of shares. Withholding tax amounting to 15% filer and 20% Non-filer is charged upon receipt of dividends and capital gains tax is charged on the basis of holding period. For a holding period greater than 12 months, no CGT is charged, Federal Excise Duty. For further details you should seek professional tax guidance

How can one successfully determine upcoming movements in stocks/commodities?2019-04-18T11:00:45+00:00

Generally well managed companies will produce strong results which will positively affect their share price. To understand commodities, one needs to understand geo-political scenario.

How can I open an account with FES?2019-04-18T11:01:02+00:00

You can open an account with FES by filling out the account opening form available at our office. Once all requirements are met, you will have access to your trading account.

What are the documents required for opening an account with FES?2019-04-18T11:01:24+00:00

The necessary documents are an FES account opening form, CDC sub account opening form, copies of Computerized National Identity Card (CNIC) of the main account holder, joint account holder (if any), nominee and witnesses, and a signed specimen signature card.

Does FES offer online trading?2019-04-18T11:01:50+00:00

Yes, FES offers online trading to interested clients. Kindly refer to the ‘FES Client Centre’ for further details.

What is the Central Depositary Company (CDC)/Central Depository System (CDS)?2019-04-18T11:02:00+00:00

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 relating to stock handling on the settlement date, registration of shares, and corporate action. Clients are required to open a CDS sub-account with Fair Edge Securities (Private) Limited, for which a form is included in the account application booklet.

How do I transfer my holdings in the CDS to a broker?2019-04-18T11:02:10+00:00

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 your shares to transfer those shares. You will be able to trade those shares after its receipt by Fair Edge Securities (Private) Limited.