PRESENNTED BY Fida ahmed BAloch

DEPARTMENT OF COMMERCE

Minhaj UNIVERSITYLahore

KARACHI STOCK EXCHANGE

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)

Introduction to KSE

Customers of KSE:Issuers (Listed company)Brokers / MembersInvestors

Eligibility To List in:Minimum paid up capital must be RS 10 millionMinimum Public offering must be 5 million or 25% of the

capital

Local Investors

Foreign Investors

Mutual Funds

Institutions

Banks

Major Participants of market

The world top stock ExchangesNEW 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

The world top stock ExchangesSHAINGHAI STOCK EXCHANGE:

Market Capitalization (2011, USD Billions) – 2,357

HONGKONG STOCK EXCHANGE:Market Capitalization (2011, USD Billions) – 2,258

Agreements with other Exchanges

• Dubai Financial Market

• Abu Dhabi Securities Market

• Shanghai Stock Exchange

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

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

LISTING REGULATIONSOF 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.

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.

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.

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.

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.