AHSEN RAZA KHAN

AYLA WAJAHAT
MADIHA HAROON
SAAD JALIL
SHEIKH TAIMOOR HAROON
TOSIQ HAMMIAT

A stock exchange, share market or bourse is a
corporation or mutual organization which provides
facilities for stock brokers and traders, to trade in
company stocks and other security.

Incorporated on March 10, 1949

Premier Stock exchange of the country

Started with 5 companies that had a paid up
capital of Rs. 37 million

Trading was done through an open-out-cry
system

The first index was the KSE 50 Index

Exchange owned by 200 members

652 companies listed

4 indices

Modern Risk Management System

KSE uses FIX Protocol

Electronic Trading through KATS



Publicly Listed Company with
strategic investor

Products to include:
Options
ETFs
Tradeable Sector Indices
Debt Market Trading

Broad based investor
participation

Cross border listings of
companies

Opening up of branches in other
cities and in the region

Raising capital for businesses
Mobilizing savings for investment
Facilitating company growth
Redistribution of wealth
Corporate governance
Creating investment opportunities for small investors
Government capital-raising for development projects
Barometer of the economy


ROLES AND FUNCTION OF
KARACHI STOCK EXCHANGE
Fair
The exchange assures that no investor will have an undue advantage over other market
participants.

Efficient market
This means that orders are executed and transactions are settled in the fastest possible way.

Doing business
People who buy or sell stock on an exchange do so through a broker.
The broker takes your order to the floor of the exchange looks for a broker representing
someone wanting to buy/sell. If a mutually agreeable price is found the trade is made

Transparency
Investor make informed and intelligent decision about the particular stock based on
information.
Listed companies must disclose information in timely, complete and accurate manner
to the Exchange and the public on a regular basis.
Required information include stock price, corporate conditions and developments
dividend, mergers and joint ventures, and management changes etc.

Ready Market
A conventional stock market also known as the
regular market, where buyers and sellers come
together to trade shares. Settlement of trade
occurs 2 days after the trade.


Cash Settled Futures
A standardized contract, to buy or sell a certain
underlying instrument at a certain date in the
future, at specified price. All settlement occurs
purely on cash basis. Depending on the contract,
settlement occurs 30, 60 & 90 days after the
contract is purchased.






Deliverable Futures
Forward contracts to buy or sell a certain underlying
instrument with actual delivery of the underlying
instrument occurring. Settlement occurs 30 days after
the contract is purchased.


Stock Index Futures

Stock Index Futures are traded in a number of contracts.
Each contract is to buy or sell a fixed value of the index.
Stock Index Futures Contract occurs 90 days after the
contract is purchased.


Company Services

Customized services and state-of-the-art technology
infrastructure, have given us an edge over other exchanges
in the region.
Fully automated trading, clearing and settlement system.
Internet routed trading facility.
Gateway trading (Order Management System).
Investors and fund managers can also access information
through Display Only Terminal
Internet trading facilities available.
Order-driven system .
Brokers connectivity to KSE through VPN (to ensure
security of data).

Data Services:

TV channels also display KSE ticker through live feeds
from KSE system.
Investors provided customized data packages for
trading and assessment of their portfolio on a real time
basis.
Data feed provided to major international
redistributors (Reuters, Bloomberg) on real time basis.
KSE website offers data of market on real time basis,
including listed company profiles, snap shot of
financials, press releases and summary of market
activities on real time basis.

In order to purchase or sell securities on a stock exchange, the following
steps have to be taken:
1. Selection of Broker.
2. Placing the order.
3. Preparing the contract note.
4. Settlement.

A CONTRACT NOTE
GENERALLY CONTAINS
FOLLOWING
INFORMATION


Name and the address of the
stockbroker.
The name and address of the jobber.
The type and price of the share.
The commission of the broker.
The date of transaction
The settlement in the Karachi Stock Exchange takes
place through the centralized clearing house.

The trades in the Karachi Stock Exchange are settled
through the weekly clearing system

THE CENTRAL DEPOSITORY COMPANY (CDC)
established in 1993 and started its operations in 1997
introduced electronic custody of shares and paperless
settlement of securities
the only securities depository of the Pakistan, sponsored
by the stock exchanges, national and international
institutions
regulated by the Securities Exchange Commission of
Pakistan
key function of CDC is to operate and maintain the Central
Depository System (CDS) in the guidance of a well-defined
legal framework
THE NATIONAL CLEARING COMPANY OF PAKISTAN
LIMITED (NCCPL)
On July 3, 2001 to manage and operate the National Clearing
& Settlement System (NCSS), an automated electronic
settlement system, NCCPL was incorporated
a separate legal entity and a significant institution of
Pakistan's Capital Market providing clearing and settlement
services to all three stock exchange in the country
provides stability to the market by capping the systematic
risk to a good extent
improved efficiency of the settlement process by introducing
a consolidated and geographical neutral clearing and
settlement system
NCSSs technologically advanced features such as automated
Pay and
Collect functionality, introduced extraordinary transparency
and efficiency in the clearing process



The Securities and Exchange Commission of
Pakistan (SECP) is a regulatory authority for the
securities markets and corporate sector in
Pakistan.

Regulation of securities and CDC (Central Depository
Company).
Credit rating companies.
Incorporation/registration of companies.
Administration of company law.
Regulation of non banking finance.
Encourage foreign investment


KSE 100
Most widely reported Index
Representation of all Sectors of the Exchange
Consists of 100 companies representing 85% of total market
capitalization of the exchange

KSE 30
Introduced in 2006
Based on the Free Float Methodology
Includes only the top 30 most liquid companies listed on the
KSE
Largest 30 free float market capitalization companies

KMI - 30

Introduced in September 2008

KMI comprises of 30 Companies that quality the KMI Shariah screening
criteria and are weighted by float adjusted market capitalization.

12% cap on weights of individual securities.

Rebalancing of the Index will be done bi-annually.

A total return Index based on free float methodology

All Shares

Is a capital weighted index and consists of all companies