2.1 Subject to clause 2.3 below;
a) In the event of a Joint Account, the Stockbroker Firm shall obtain from the Client/s, the name/s of the persons;
- Authorized to give trading orders and settlement instructions; and,
- To whom payments by the Stockbroker Firm are to be made.
b) In the event of a Corporate Client Account, the Stockbroker Firm shall obtain from the Client/s, the name/s of specific directors and officers authorized to;
- Trade in securities; and,
- Execute all documentation for trading and settlement in the account, together with a copy of the Board resolution certified by the Company Secretary evidencing same.
c) the Stockbroker Firm shall carry out all transactions based on the specific order instructions provided by the Client through the communications channels specified in clause 1.4 of this Agreement.
2.2 Prior to accepting any orders from a third party on behalf of the Client, the Stockbroker Firm shall first obtain the written authorization of the Client empowering the third party to trade on behalf of the Client/s through the Client’s CDS Account.
2.3 The Stockbroker Firm shall not exercise the discretion to buy or sell securities on behalf of the Client/s, unless the Client/s has/have given prior written authorization to the Stockbroker Firm to effect transactions for the Client/s without his/their specific order instructions as set out in clause 1.5 of this Agreement.
2.4 The Stockbroker Firm shall send to the Client a note confirming the purchase and/or sale of securities (bought/sold note) by the end of the trade day (T).
Upon obtaining the prior consent of the Client, the Stockbroker Firm may send the bought/sold notes to the Client/s in electronic form to the e-mail address provided by the Client/s for such purpose.
2.5 The Stockbroker Firm shall send a Statement of Accounts to the Client/s who is/are debtor/s over Trade Day + 3 (T+3), on a monthly basis by the 7th day of the following month. This should apply when the client/s has/have had transactions during the month and the "interest charged on delayed payment" should also be considered as a transaction for this purpose. Such Statement of Accounts shall specify the transactions in the account including receipts and payments during the month under reference
2.6 In the event the Statements of Accounts are issued electronically, the Stockbroker Firm shall obtain the consent of the Client/s and retain evidence of such consent.
2.7 The Stockbroker Firm shall provide a copy of its latest Audited Financial Statements filed with the CSE to a Client/s, upon request by such Client/s.
2.8 The Stockbroker Firm shall communicate in writing, directly with its Client in respect of statements, bought/sold notes or any other information unless the Client/s has/have authorized the Stockbroker Firm otherwise in writing.
2.9 The Stockbroker Firm shall ensure that ‘cleared funds' are made available to the Client on the settlement date, unless the Client has expressly permitted the Stockbroker Firm, in writing, to hold the sales proceeds for future purchases.
2.10 Upon the request of the Client, the Stockbroker Firm may:
a) Extend credit facilitates to the Client solely for the purpose of purchasing securities on the CSE and in accordance with the applicable Rules set out in the CSE Stockbroker Rules and terms and condition mutually agreed to between the Client and the Stockbroker Firm by way of a written agreement for extension of such facilities.
b) Provide internet trading facilities to such Client based on a written agreement mutually agreed between the Client/s and the Stockbroker Firm, in accordance with the requirements applicable to Internet Trading published by the CSE from time to time.
2.11 The Stockbroker Firm shall assign a Registered Investment Advisor to deal with the Client/s and shall inform such Client/s regarding the name and contact details of the Registered investment Advisor assigned to such Client/s. Further, the Stockbroker Firm shall inform the Client in writing regarding any change to the Registered Investment Advisor within seven (7) Calendar Days of such change.
2.12 The Stockbroker Firm shall forthwith notify the Client in writing, if there is any material change in contact or other information provided to the Client by the Stockbroker Firm.
2.13 The Stockbroker Firm undertakes to maintain all information of the Client/s in complete confidence and the Stockbroker Firm shall not disclose such information to any person except in accordance with the Stockbroker Rules of the CSE.
2.14 The Stockbroker Firm shall disclose to the Client, the existence of any incentive scheme applicable for employees of the Stockbroker Firm, which is based on turnover generated from the transactions carried out by the employees for the Client.
2.15 The Stockbroker Firm may recover any outstanding balance arising from the purchase of securities of the Client from the sales proceeds due to the buyer only in the circumstances set out in the Stockbroker Rules of the CSE.
2.16 The Stockbroker Firm shall provide services to the Client in compliance with the applicable Rules of the CSE, CDS, SEC and other applicable laws of Sri Lanka.