Commodities

Direct Fund Model

To safeguard the interest of the investors, PMEX has introduced a unique Direct Fund Mode (DFM). Under this arrangement, the customers can deposit their margins directly with the Exchange, as well as, take withdrawal directly into their bank accounts without the involvement of broker(s). The DFM empowers the customers to get complete control over their funds at all times and restricts the role of the brokers primarily to servicing the existing customers and soliciting new businesses.

Under the DFM, all the existing trading account(s) who have traded after June 30, 2020, will be issued a 24 Digit Sub- Collection Account (SCA) at MCB. This SCA will be tagged to the trading account(s).

The SCA will be a non-checking virtual account and will only be used for the allocation of funds into PMEX designated trading account(s). Neither Customers nor PMEX will have control over the virtual account.

The SCA will reflect in the customer’s profile in Back Office (BO) application.If a customer holds multiple trading accounts, SCA will be issued and tagged against each separate trading account(s).

In case any inactive customer intends to re-activate his/her trading account, the respective broker(s) will inform PMEX for the issuance of SCA. Issuance of SCA for the new or inactive trading account(s) may take up to 7-10 banking business days. Meanwhile, customers will be able to transfer their funds through the branch deposits mechanism.

Fund Deposit

Customers can ONLY transfer funds to PMEX directly. Customers can transfer their funds to PMEX through the following ways:

Online Transactions

 .               Add 24-digit SCA as “beneficiary” in the banking portal.

.               Transfer funds to SCA through the banking portal.

.               The funds transferred will reflect in the customer’s trading account in

.               MT5 and the general ledger in the BO portal within 30 minutes.

.               Online transactions such as, Inter Bank Funds Transfer (IBFT), RTGS and Intra Funds Transfer (IFT) are available through DFM.

.               PMEX will not be responsible in case of any error(s) committed by the customers.

Over-The-Counter (OTC) Transactions

 .               OTC transactions (Pay Orders (POs) and cheque deposits) at MCB branches are also available.

.               To deposit cheques/POs, the customer will prepare a cheque in favour of Pakistan Mercantile Exchange Limited and deposit it in any branch of MCB                                Bank.

.               For all OTC transactions, a special deposit slip “Collect Plus Deposit Slip” is mandatory. The code of the deposit slip is “MF-71” which has been made                              available at MCB branches.

.               The customer is responsible to ensure correct information is provided while filling out MF-71 as per the following information:

 Branch Name: GTB Shaheen Complex

Branch Code: 0069

Company Name: Pakistan Mercantile Exchange Limited

TBD Company Code: PMEX

Dealer Code: Customer’s trading account in which the funds are required to start the trading

.               The funds transferred after successful clearing will reflect in the customer’s trading account in

                MT5 and general ledger in the BO portal within 30 minutes

.               Cash deposits are strictly prohibited.

.               Customers are advised to ensure that bank staff must post the required transaction(s) on a timely basis.

.               PMEX will not be responsible in case of any error(s) committed by customers or banks

Fund withdrawal:     

Funds withdrawals requests as per current practice are initiated through the BO portal. Upon broker’s approval and successful validation at the End of Day (EoD) process, funds will be directly credited into the customer’s designated bank account within two banking days.

Following bank charges will be recovered from the customer’s approved withdrawal amount and the remaining amount will be transferred to the client’s designated bank account:

Any change in the bank charges is communicated to the market participants through a circular.

PROHIBIT ACTIVITIES

Foundation Securities (Private.) Limited is a leading brokerage house committed to upholding the highest standards of integrity and compliance within the financial industry. As a responsible financial entity, FSL strictly adheres to a set of regulatory guidelines designed to ensure the security and transparency of its operations. In compliance with these regulations, FSL prohibits certain activities to safeguard the interests of its clients and maintain the integrity of the financial system. The following restrictions are in place:

Prohibition of Cash Dealing:

FSL strictly prohibits the use of cash in any form for trading activities. This policy is in line with regulatory standards aimed at preventing money laundering and other illicit financial activities. Clients are required to conduct all transactions through approved electronic channels to maintain transparency and traceability.

Prohibition of Deposit Taking:

FSL does not engage in the acceptance of deposits from clients. The platform functions solely as a trading and investment platform, and clients are urged to refrain from considering FSL as a deposit-taking institution. This restriction is in place to prevent any confusion and to align with regulatory frameworks governing financial institutions.

Promise of Fixed Returns:

In compliance with PMEX regulations, Foundation Securities explicitly prohibits any promises or guarantees of fixed returns on investments. The market inherently involves risks, and FSL emphasizes the importance of understanding and accepting these risks before engaging in trading activities. Clients are encouraged to make investment decisions based on thorough analysis and due diligence.

Prohibition on Sharing of User ID and Password:

FSL places a high premium on the security of its clients’ accounts. Therefore, the sharing of user IDs and passwords is strictly prohibited. Clients are advised to keep their login credentials confidential to prevent unauthorized access and potential misuse of their accounts. This measure is crucial for protecting the privacy and financial well-being of FSL clients.

By enforcing these prohibitions, Foundation Securities aims to create a secure and transparent trading environment, fostering trust among its clients and upholding the regulatory standards governing the financial industry. Clients are encouraged to familiarize themselves with these guidelines to ensure a smooth and compliant trading experience on the PMEX platform.