Who is MRA and why invest with them?

MRA Securities is a local brokerage firm catering to both retail and institutional investors in Pakistan. Known for their personalised support and cost-effective services, MRA is a strong player in the PSX ecosystem.

Investors can access equity trading, IPO subscriptions, fixed income securities, and also receive trading alerts and guidance from their in-house team.

Opening an account is simple — contact their office or sign up online, submit your CNIC, bank proof, and fill out the investor profile form. Support is provided at every step of the process.

MRA Securities is a great choice for everyday investors looking for direct access to the PSX with hands-on service and a personal touch.

What Are brokers and How Do They Work in Pakistan?

Brokers are licensed market participants who act as intermediaries between investors and the Pakistan Stock Exchange (PSX). They are authorised and regulated by the Securities and Exchange Commission of Pakistan (SECP) and must adhere to strict compliance, capital adequacy, and reporting standards.

Brokers play a crucial role in providing access to the equity and debt markets, facilitating investment by individuals, institutions, and overseas Pakistanis. Here’s how they function in Pakistan’s capital markets ecosystem:

• Trade Execution: Brokers buy and sell shares, mutual funds, government securities, and corporate debt instruments listed on the PSX. They place orders as per clients’ instructions via trading terminals or online platforms.

• Licensing and Regulation: All brokers must be registered with the SECP and hold a valid TREC (Trading Right Entitlement Certificate) issued by the PSX. Their operations are regularly audited and monitored.

• Account Opening (CDC and NCCPL): Investors must open a CDC (Central Depository Company) account and be registered with the National Clearing Company of Pakistan Limited (NCCPL). Brokers help facilitate these steps during onboarding.

• Research and Advisory: Full-service brokers offer daily market updates, equity research, investment strategy recommendations, and risk analysis, catering to both retail and institutional investors.

• Participation in IPOs: Stockbrokers assist clients in subscribing to Initial Public Offerings (IPOs) via the eIPO system or through manual application submission.

• Clearing and Settlement: All trades are settled through NCCPL on a T+2 basis, and shares are securely held in CDC sub-accounts under the investor’s name.

• Client Base: Pakistani brokers serve retail investors, corporates, banks, mutual funds, and Non-Resident Pakistanis (NRPs) who invest through the Roshan Digital Account (RDA) framework.

• Fees and Commissions: Brokerage fees in Pakistan are regulated but vary depending on the broker and type of service. Most brokers also charge minimal annual maintenance for CDC accounts.

Tradable Instruments on the Pakistan Stock Exchange

PSX offers investors access to a wide range of tradable financial instruments. It serves as a platform for companies to raise capital and for individuals and institutions to invest in Pakistan’s economic growth through regulated and transparent market mechanisms.

Regulated by the Securities and Exchange Commission of Pakistan (SECP), the PSX offers multiple asset classes suitable for both long-term investment and short-term trading. Below is an overview of the key tradable instruments available on the PSX:

• Equities (Shares): Ordinary shares of listed companies are the most actively traded instruments on the PSX. Investors can buy and sell shares of firms across sectors such as banking, cement, textile, energy, fertiliser, and pharmaceuticals. These shares offer ownership, potential dividends, and capital gains.

• Preference Shares: Some companies issue preference shares, which carry fixed dividend rights and priority over common shares during dividend payouts and liquidation. These are attractive for investors seeking stable income with lower volatility.

• Debt Instruments (TFCs & Sukuks): Term Finance Certificates (TFCs) and Sukuks (Islamic bonds) are listed on the PSX to provide fixed or profit-based returns. TFCs are conventional corporate debt, while Sukuks comply with Shariah principles. Both are suitable for income-seeking investors with moderate risk tolerance.

• Government Bonds (via secondary market): Although primarily issued through auctions managed by the State Bank of Pakistan (SBP), selected government securities like Pakistan Investment Bonds (PIBs) and Treasury Bills may be traded through brokers or in secondary markets regulated by PSX and NCCPL.

• Mutual Funds: Open-end and closed-end mutual funds managed by licensed Asset Management Companies (AMCs) are listed or offered through PSX brokers. These funds invest in equities, money markets, or hybrid portfolios and are ideal for investors seeking diversification.

• Exchange-Traded Funds (ETFs): PSX has introduced ETFs to allow investors to track indices such as the KSE-100 or sector-specific baskets. These instruments offer diversification, low fees, and are traded like regular stocks during market hours.

• Futures Contracts: Stock and index futures are available through PSX’s derivative market. These contracts allow investors to speculate on price movements or hedge their existing portfolios. Futures are cash-settled and have monthly expiry cycles.

• Initial Public Offerings (IPOs): Companies can raise equity capital by offering new shares through IPOs, which are listed and traded on the PSX. Retail and institutional investors can subscribe to IPOs electronically through the PSX eIPO portal or via authorised banks.

• Rights Shares: Existing shareholders are occasionally offered rights shares, which allow them to buy additional shares at a discount. These rights are often traded on the PSX for a limited time before expiry.