FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 44
KARACHI STOCK EXCHANGE
Trading
Days
Hours
Market segmentation
System
Mechanisms
Market-maker/specialists
Instruments
Currency
Real time information:
Clearing & Settlement
Monday-Friday
9:45 am-2:15 pm (Mon-Thur)
9:30 a.m.-12:00 noon (Friday)
2:30 p.m.-4:00 p.m. (Friday)
4 market segments
Automated, depository link, data dissemination,
reporting facilities, WAN
Bid offer matching
No
Ordinary shares, Modaraba certificates, preference
shares, TFCs, government bonds/securities
Local
Best bid/ask, last price, last volume, total volume,
listed company announcement
Structure & Regulations
Legal
Regulation
Securities market: regulations
Trading rules
Surveillance
Corporate actions
Trading halts regulations
Investor protection
Central depository
Period
Registered
Settlement
Clearing
DVP
Clearing institution
Risk sharing
Margin/lending
Custodians
Foreign Participation
Company limited by guarantee, without share capital
Self
Securities & Exchange Ordinance 1969 and
rules created within the companies ordinance 1984
Each trading segment has its own trading rules
Yes
Centralized
Yes
Yes
Foreign investors
Investment limitations
Repatriation
Allowed, no restrictions
No limitations on the extent of
foreign ownership except in life
insurance companies. However,
as per WTO, permission of SBP is
required in the case of transfer of
5% or more shares of any bank or
financial institution. There is no
limit for holding shares for trading
purposes
n/a
Trading by Sector
Taxes
Cash dividends
Interest income
Capital gains
Yes
T+1, T+3 and future contracts
Yes
Book entry and physical
Netting
Yes, full DVP
Yes, wholly owned, National
Clearing & Settlement System
operating since Dec 2001.
Presently, around 200 scrips
are settled under this system.
Yes
Yes/no
Institutional investors,
brokerage houses, banks,
exchange members, associate
members of the clearing house
10%
10%
Exempted until 2004
12%
14%
6%
8%
14%
18%
28%
Fuel & energy
Transport
Finance
Textile
Miscellaneous
Minimum Listing Requirements
Requirements
Years of business activity
Capitalization of issue
Free float
Minimum # of shareholders
Minimum years of positive financial results
# times dividends distributed in last 3 years
Listing agreement with central depository
Prospectus required
Special requirements
Market
No requirement for issuance of shares at par
US$ 854,700 approximately (at least Rs.50 million)
50% if capital is under Rs. 200 million, greater than
25% or 100 million if capital is over Rs.200 million
500
n/a
n/a
Yes
Yes
Yes
Chemical
Food