5 stock exchanges in pakistan

8/8/2019 5 Stock Exchanges in Pakistan

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KARACHI STOCK EXCHANGE

Karachi Stock Exchange, the premier stock exchange of the country, wasestablished in September 18, 1947.

Initially 5 companies were listed, presently 666 companies are listed.


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TRADING CYCLE

Selection of scrip, broker.

Opening of account with CDC and the broker

Placement of order for purchase/ sale of shares at the given price.

Broker feeds the order on computer through KATS.

On matching of order the trade executes.

On confirmation of trade the broker provides:Date on which the order executedNature of transaction (T+3, Future or Spot)

Price at which the transaction executedCommission charges of broker

Under T+3 system the payment is made on the 3rd day of the transaction and theCDC account will be credited

Broker makes payment to the Clearing House of the Exchange.

Selection of scrip

order

Matching

Receipt


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WHAT DO INVESTORS LOOK FOR

The main factors that investors consider when evaluating the attractivenessof an emerging market.

1. Economic Development

Sustainability of economic achievement and growth (e.g. sound fiscaland monetary policies) Resilience to adverse internal or external events

2. Market Development and Operational Efficiency Clear market regulations and enforcement of laws (protection of

minority shareholders)

Efficient Settlement of trades Availability of market data and disclosure of information in general

3. Accessibility to Foreign Investors Foreign investment restrictions, such as company or industry Foreign

Ownership Limits Freedom of capital flows


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T+3 Settlement System

REFORMS

Capital Market Reforms & Initiatives

All Transactions Fully Automated

Undisclosed Trading

Future Contracts

Central Depository Company

National Clearing & Settlement System


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Odd Lots Trading on KATS

REFORMS


Live Quotes on Mobile Phones

Display Only Terminals (DOT)

Gateway for Internet Trading

Clearing House Protection Fund

Investors Protection Fund (Duly Funded)


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COT

REFORMS


Period Extended to 10 Days

Rates Capped

Risk Management

Capital Adequacy

Exposure Monitoring

Market Surveillance

Marketing & Research Department

Image Enhancement

InvestorsBriefing

Close Liaison with Media

Circuit Breakers


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TECHNOLOGICAL ADVANCEMENTS

Hardware Additions

Homegrown Software

Capable of Handling More Than Million Trades

Capable ofProviding Virtually Unlimited TWS

Real-Time Market Access through Internet


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On-line Access for Internet Trading

THE CHALLENGES AHEAD

Margin Financing

Attracting New Listings

Promotion of TFC Trade

Cross-Border Listing Possibilities

Trading of Index Futures

Increasing the Free Float

Investors Education

5 stock exchanges in pakistan

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