Regulatory Alerts2007-01-01
FRA Book No. 39 of 2007 on Brokerage Companies Financing Client Purchases via Post-Dated Checks
The Financial Regulatory Authority (FRA) issued Book No. 39 of 2007 to authorize brokerage companies to finance client purchases in exchange for retaining post-dated checks. This regulation establishes the legal framework for securing financing obligations through negotiable instruments drawn by borrowers. It standardizes operational practices, ensuring that brokerage firms can effectively manage client credit while maintaining clear ownership of the underlying checks.
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