IRREVOCABLE BANK GUARANTEE
THIS IRREVOCABLE BANK GUARANTEE is made and executed on this ___ day ______. BY: _______________________ Bank Limited, a Banking Company incorporated in Pakistan and having its head office at _______________________ (city name) and Branch at Stock Exchange Building, Stock Exchange Road,, Karachi (herein after referred to as the “Bank”, which expression shall, wherever the context so requires, means and include its successors-in-interest and permitted assigns) IN FAVOUR OF: KARACHI STOCK EXCHANGE LIMITED, a Stock Exchange incorporated under the Laws of Pakistan, having its registered office at Stock Exchange Building, Stock Exchange Road, Karachi, Pakistan (herein after referred to as the “Stock Exchange”, which expression shall, wherever the context so requires, means and include its successors-in-interest and permitted assigns); WHEREAS: (a) The Stock Exchange has been registered under the Securities and Exchange Ordinance, 1969 and has made available facilities, among others, for dealing in securities and, for risk management and settlement of contracts, trades and transactions in respect of securities and for execution of transactions through Karachi Automated Trading System under and in terms of its various regulations framed for these purposes (hereinafter referred as the “Regulations”, which term shall also include Board Decisions, Notices, all amendments, modifications and additions therein from time to time and any new Regulations made in substitution therefor); ___________________________ (hereinafter referred to as “TRE Certificate Holder”, which term shall include his/its legal heirs, nominees, administrators, executors, successors-in-interest and assigns) and having office at ________, Karachi Pakistan has been admitted by the Stock Exchange as a TRE Certificate Holder under its Articles of Association and registered as a Broker under Brokers and Agents Registration Rules 2001 made under the Securities and Exchange Ordinance, 1969 to transact securities business on the Stock Exchange. Under the Regulations of the Stock Exchange, the TRE Certificate holders executing securities transactions at the Stock Exchange incur various liabilities including but not limited to deposit of Exposure Margins, Special Margins/ Liquidity Margins, payment of Mark to Market Losses, Final Losses and ultimate settlement of executed trades, transactions and contracts.
NOW, THEREFORE, in consideration of the Stock Exchange allowing the TRE Certificate holder to carry out securities transactions at the Stock Exchange, the Bank hereby agrees for the benefit of the Stock Exchange as follows:
Interpretation 1.1 Terms defined in the description of the parties and in the Preamble to this Guarantee appearing above shall, unless otherwise defined below, have the same meaning in this Guarantee. Terms defined in the Regulations shall, unless otherwise defined below, have the same meaning in this Guarantee.
“TRE Certificate” means a Trading Rights Entitlement (TRE) Certificate issued by the Exchange evidencing right of a TRE Certificate Holder to apply for registration as a Broker in accordance with the Brokers and Agents Registration Rules, 2001 as amended from time to time; “TRE Certificate Holder” means a person who is issued a TRE Certificate by the Exchange under section 5 of the Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012, or purchases or acquires such TRE Certificate under section 16 of the said Act or is issued a fresh TRE Certificate in accordance with the provisions of the said Act; “Broker” means a TRE Certificate Holder of the Exchange registered with the Commission as Broker under the Brokers and Agents Registration Rules, 2001; “Exchange” shall mean the Karachi Stock Exchange Limited; Any reference in this Guarantee to: (a) the “Stock Exchange” shall be construed so as to include its successors, transferees and assigns; a...
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