FEAS Yearbook FEAS Yearbook 2003 | Page 55

KARACHI STOCK EXCHANGE CLEARING & SETTLEMENT TRADING Days Hours Market segmentation System Mechanisms Market makers/specialists Instruments Currency Real time information Monday-Friday 09:45-14:15 (Mon-Thur) 09:30-12:00 (Friday) 14:30-16:00 (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 Yes Period T+1, T+3 and future contracts Registered Yes Settlement Book entry and physical Clearing Netting DVP Yes, full DVP Clearing institution Yes, wholly owned, National Clearing & Settlement System operating since Dec 2001. Presently, around 200 scrips are settled under this system. Risk sharing Yes Margin/lending Yes/no Custodians Institutional investors, brokerage houses, banks, exchange members, associate members of the clearing house 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 TAXES Cash dividends Interest income Capital gains 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 2003-MARKET CAPITALIZATION BY SECTOR 10% 10% Exempted until 2004 5% Food & personal care products 14% Chemicals & pharmaceuticals 3% Miscellaneous 17% Finance 7% Textiles 17% Transport & communication 2004 HOLIDAY CALENDAR Feb. 1, 2, 3, 5, 29; Mar. 1, 23; May. 1; Aug. 14; Nov. 9, 11, 12, 13, 22 or 23; Dec. 25 5% Auto & allied, engineering & cables 7% Sugar, cement & tobacco 25% Fuel & energy MINIMUM LISTING REQUIREMENTS Requirements Minimum paid-in capital Years of business activity Capitalization of issue Free float Free float ratio Minimum # of shareholders Minimum years of positive financial results # prior years audited financial accounts # times dividends distributed in last 3 years Whole class of securities to be issued Listing agreement with Central Depository Prospectus Special requirements Additional special requirements Category A n/a No requirement for issuance of shares at par At least RS 50 million (appx. US$ 855,000) n/a 50% of its capital under RS 200 million, greater than 25% or RS 100 million whichever is higher, if the capital is above RS 200 million 500 n/a n/a n/a n/a Yes Yes Yes n/a FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004 PAGE 53