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
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