Topic of Investment

3. PRESENNTED BY
Fida ahmed BAloch
DEPARTMENT OF COMMERCE
Minhaj UNIVERSITY
Lahore
KARACHI STOCK EXCHANGE

5. Introduction to KSE
 On September 26, 2013
 There are 652 companies
 Total market capitalization is $53.3 billions
 36 sectors are listed in Karachi Stock exchange
 Exchanged owned by 200 members
 3 Indexes (KSE 100, KSE 30, KMI 30 indexes)

6. Introduction to KSE
Customers of KSE:
Issuers (Listed company)
Brokers / Members
Investors
Eligibility To List in:
Minimum paid up capital must be RS 10 million
Minimum Public offering must be 5 million or 25% of the
capital

7. Local Investors
Foreign Investors
Mutual Funds
Institutions
Banks
Major Participants of market

8. The world top stock Exchanges
NEW YORK STOCK EXCHANGE:
Market Capitalization
(2011, USD Billions) – 14,242
TOKYO STOCK EXCHANGE:
Market Capitalization
(2011, USD Billions) – 3,325
LONDON STOCK EXCHANGE:
Market Capitalization
(2011, USD Billions) – 3,266

9. The world top stock Exchanges
SHAINGHAI STOCK EXCHANGE:
Market Capitalization
(2011, USD Billions) – 2,357
HONGKONG STOCK EXCHANGE:
Market Capitalization
(2011, USD Billions) – 2,258

10. Agreements with other Exchanges
• Dubai Financial Market
• Abu Dhabi Securities
Market
• Shanghai Stock Exchange

11. Listing Company in Karachi Stock
Exchange
Objectives of Listing in Stock Exchange:
• Provide Ready marketability, liquidity &
negotiability to securities;
• Mobilize savings for economic development;
• Ensure proper supervision and control of
dealing
• Protect interest of investors by ensuring full
disclosures

12. Advantages of Listing in Stock
Exchange:
• Liquidity
• Best price for securities
• Transparency in dealing
• Enables the management to broaden and
diversify shareholding
• Helps the company to gain national
importance and widespread recognition
• Helps in rising additional capital

13. LISTING REGULATIONS
OF THE KARACHI STOCK EXCHANGE
(GUARANTEE) LIMITED
• Listing requirements are the set of conditions
imposed by a given stock exchange upon
companies that want to be listed on that
exchange. Such conditions sometimes include
minimum number of shares outstanding,
minimum market capitalization, and minimum
annual income.

14. A company wants to list in KSE should
meet theses criteria:
• The company has a minimum paid up capital of
Rs. 10 million
• The minimum public offering is Rs. 5 million or
25% of the capital, whichever is higher.
• At the time of listing, the break-up value of the
ordinary shares of the company, duly certified
by a Chartered Accountant / Auditor shall not be
less than its face value.
• The offering document has to be cleared by the
KSE before it is submitted to the Securities
Exchange Commission of Pakistan for approval.

15. The company shall comply with the
following listing requirements:-
1. The Company shall apply for approval to the Exchange.
The application shall contain the names of the sponsors of
the company, names of the directors of the Company.
2. The company shall not be eligible for listing under these
regulations if any of its Director / Sponsor is a defaulter of
any Stock Exchange and / or he is a Director in other listed
company which has violated and / or failed to comply
with any provision of the Listing Regulations of the
Exchange and/or has defaulted in the payment of the
loans of any bank or financial institution or government
dues, unless the same are legitimately disputed by him by
litigation.

16. Fee schedule of KSE:
• Rates of Initial Listing Fee Payable by the
Companies with Listing Application:
1. Initial Listing fee:
A company applying for listing on the OTC
shall pay an initial listing fee equivalent to
one twentieth of one percent of the total
value of Security.

17. 2. Annual Listing fee:
• A company shall pay, in respect of each
financial year of the Exchange, Which starts
from 1st July and ending on 30th June next, an
annual listing fee, which shall be payable by or
before the 30th September in each calendar
year, as per the slabs of fee applicable to debt
instruments.
• A company applying for enlistment on the
Exchange shall, in addition to other fees, pay a
sum of Rs. 50,000/- (Rupees fifty thousand
only) as non-refundable service charges.