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.