Introduction

Lahore Stock Exchange (LSE) is a fully electronic and completely automated stock exchange of Pakistan. LSE was the second stock exchange to be licensed in Pakistan during 1971. Today, LSE is the only domestic exchange to have more than one trading floors and is also the only exchange in the region to have established a unified order book with another domestic stock exchange in the country. Activities at LSE have increased significantly in all operational areas since its inception. A number of significant initiatives have been taken to improve the regulatory regime and the trading environment for the benefit of Institutional Investors as well as listed companies. LSE has successfully met various challenges and has now emerged, fully geared and positioned to aggressively compete with its fellow Exchanges, contributing towards the growth of Capital Markets in Pakistan.

Overview Vision Statement

To develop ourselves into a dynamic and prominent multi product trading place, a well respected corporate entity and a valued contributor to the economy. Our vision statement describes the top ambition of our company in which the focus has been on three fundamental aspects of our business how we want to position our trading market; how we would want to bring respectability to us as a corporate citizen; and how a well functioning and a well regulated market can play its expected role to our economy providing a fair and transparent price discovery mechanism, enabling the corporations to raise capital in an effortless manner, and then regulating these companies in an effective manner. Thus our vision statement captures all the elements which are fundamental to our unique positioning as a market.

Mission Statement
To deliver sustainable value and offer best possible satisfaction to all stakeholders associated with our Company. Our Mission statement aims to capture the objective of sustainable value creation for our stakeholders and goes beyond that by underlining that we would also aim to provide the best possible satisfaction to all our stakeholders such as the government/regulatory agencies, the investors, the members and the financial services community. The mission is connected with the vision because if we are able to create and deliver value on consistent basis and if we succeed in satisfying all our stakeholders then we would become known for providing a better marketplace, and a successful corporate entity which takes care of all our stakeholders.

Core Values
1. To promote the values of fairness, justice and respect for our investors in every aspect of the functioning of our markets; 2. To establish a culture of responsiveness, excellent customer services and utmost courtesy to our stakeholders; 3. To inculcate the sense of accountability, professionalism, teamwork and mutual trust in our human capital; 4. To always work for sustainable improvement and continuous innovations in our work methods and products. The core values have been developed to reflect the basic principles that would, going forward, guide our interactions with every stakeholder of the organization. The values identified above would assist in the establishing the foundation of a progressive corporate culture at the exchange and ensure the credibility of our organization in the eyes of the stakeholders. The consistent application of these core values will also equip the exchange with the ability to reach its full potential in developing its human capital and to react and adapt to changing circumstances thereby optimizing long-term success.

History & Milestones Introduction

The Lahore Stock Exchange was incorporated as a company Limited by Guarantee under the Companies Act 1913 on 5th October, 1970. In the first General meeting of the Board of Directors held on the same day, it was decided that the Exchange will commence its working by December 1970. It was the third Exchange in the country after Karachi and Dacca. The 1st Registered office of Lahore Stock Exchange (G) Limited was located at 17-Bank Square, Lahore. The purpose of establishing the Exchange was that the up-country investors with predominant middle class should have new avenues for investment and lay special emphasis on small and medium industries. The largest number of medium industries and business houses were located in Punjab; therefore a large number of entrepreneurs with small industries in Punjab wished to build their industries broad based by converting them into public limited companies. Large agricultural wealth was also available to the people of the Punjab who constituted 62% of West Pakistans population and that wealth had to be geared for investment. The institution was established to facilitate the investors of Punjab and Northern areas by providing them an access to the Capital Market and enable them to take part in the progress of the Corporate Sector of the country. Ever since, the institution has served the cause of investing in small and large numbers, also providing the services and market place not only in Lahore but also beyond the citys boundaries.

1970 Year of Inception

The first President Mr. Naseer A. Shaikh and Vice President Mr. Nisar Ahmad were elected on October 15th 1970. Due to business pre-occupation in Karachi, Mr. Nisar Ahmad resigned from Vicepresidency; therefore, Mr. Rafique Saigol was elected in his place.

1971

On May 2nd, 1971, LSE Board of Directors selected 73 applicants out of 283 to become LSE Members along with 10 original signatories to the Articles of Association. The Board of Directors acting under Article 21 (c) co-opted four (4) new members as Directors:

Mr. Syed Rashad Hussain Mr. Mohammad Swaleh Manior (Director-KSE) Mr. Hamid Ahmad Mr. Mohammad Iqbal

The Rules and Regulations drafted by the Board were approved by Securities & Exchange Authority of Pakistan on March 27th, 1971 The inauguration ceremony of the Exchange was performed by Governor Punjab Lt. Gen. M. Attique-ur-Rehman on May 11th, 1971, the day on which future trading in shares and bonus vouchers commenced at Lahore Stock Exchange. Habib Bank Limited was appointed as a sole banker to the Exchange.

1972

The events from March 1971 marking the political crisis followed by the Indo-Pak war and fall of Dacca, adversely affected the Stock Exchange Business. The Government brought drastic changes by abolishing bonus voucher scheme and devaluating the currency The Board appointed United Bank Limited as the second banker to the Exchange The first Library of the Exchange was set up to facilitate the investors.

1973

Keeping in view the difficulties faced by the members and investors in getting the current rate securities listed on KSE, a telex line was installed to link both Exchanges

A major initiative taken by the Board was the constitution of following committees:

Taxation and Fiscal Committee Rules and Regulations Committee Floor and Rate Committee Arbitration Committee Defaulters Committee

1974

The budget of the year 1974 was termed as the First Investment Oriented Budget, in which the incentives provided were tax exemption on dividend income, tax credit scheme and exemption of capital gains on securities for consequent two years

1975

International recession coupled with the government policy of highly attractive saving scheme retarded the pace of development of the Exchange LSE started broadcasting of its news bulletin through television and National Press including price variations together with brief market summary

1976

Various economic factors affected the companies listed on the Exchange Attractive tax free yield offered by the Saving Schemes and banks as compared to the low return from the Exchange deteriorated the market condition

1977

The trading volume showed a five-fold increase due to the strengthening measures taken by the Martial Law Regime The measures adopted were the denationalization, demarcation of public and private sectors, reduction in taxation and excise duty, fixation of production target etc The tax on bonus shares was abolished by the present regime

1978

The Exchange performed steadily due to the steps promulgated to promote the industrial investments in the private sectors, majorly mentioning the free industrial zones in Karachi and Lahore and the capital gain tax exemptions.

1979

The measures announced by the Government started bearing fruits which was reflected by the growing volume of industrial sanctions and the buoyancy in stock market.

1980

For the first time, telephone lines were installed in the Exchange The Exchange extended its cooperation to implement the spirit of Zakat and Usher under the Ordinance 1980.

1981

The allotted plot for the new Lahore Stock Exchange site was handed over by Maj. Gen. (Retd) M. H. Ansari, Director-General (Lahore Development Authority). The office of the Exchange was provided with the facility of inter-communication.

1982

Layout for the new Lahore Stock Exchange building was finalized after extensive analysis of various designs. M/s. F. J. Whyte Group (Pakistan) was adjudged the best of all, and selected for the prestigious LSE building to be built on 19-Khayaban-e-Awan-e-Iqbal.

1983

A permanent building committee was set up which started the day to day work on the building project from the scratch. Mian Tajammal Hussain was presented a LSE Crest for his brilliant leadership and vital role in the early years of the Exchange. He served Lahore Stock Exchange as President for six (6) years and during his tenure the exchanges growth and image enhanced vigorously.

1984

The Trading activity throughout the year was very active and turnover increased manifold. 1983-84 was by every means a Landmark year as the Stock Exchange reached its record levels in turnover of shares, Price Index, Market Capitalization and Capital Formulation. The major factor behind the performance was the Sixth, 5 Year plan (1983-88) and the priority accorded to the private sector investment in various development strategies. 16 new companies with paid-up capital of Rs. 534.20 Million were listed on the Exchange.

The Govt. took positive initiatives including a major step towards industrialization, where industries with an investment up to Rs. 300 million were allowed to be set without any prior permission. First time since the inception of the Exchange, initiated monthly newsletter was published. Due to this letter, co-ordination amongst members and administration had been improved. LSE represented on the following advisory committees of the Govt.

Finance Division Export Promotion Committee on Fiscal and Finance Commissioner Income Tax

1985

The market showed a reverse and reflected a downward tempo due to geo-political situation, lesser profits of listed companies, resulting from over shutdowns, or because of strong dollar and soaring prices of imported raw materials The world economy during the year 1984-85 had started to emerge from the longest recession which continued for five years and put great strain on international trade and world financial systems resulting in an increase in real interest rate and high trade barriers The government adopted many measures for the Islamisation of the economy by introducing Musharika, equity participation, PTCs and Mudaraba Certificates Reliefs and concessions were announced for the investors and corporate sector

The ceiling of income tax was enhanced from RS.18,000/- to 24, 000/The Gift Tax was abolished The slabs of income tax was reduced from 9 to 5 Pension was exempted from income tax A commission for de-regulation was announced A National Taxation Reforms Commission was announced

1986

The Exchange showed an increase of 84% shares turnover during the year Even with the problem of balance of payments and upsurge of US dollar , the markets volume transaction and indices reflected a stable trend The first meeting of the coordination committee was held on August 13th , 1986 and the following matters were resolved

Computer/telecommunication link-age between Karachi and Lahore Stock Exchanges Simultaneous listing and delisting of companies on both Stock Exchanges Uniformity of rules and regulations and coordination of matters of mutual interests Mr. Jamil Ahmad was selected as the First Permanent Secretary to the Board.

1987

The Radio Pakistan Lahore started to announce the selected daily closing rate quotations from April 10th, 1987 In order to boost the capital market in the province of Punjab, the then Corporate Law Authority (CLA) imposed condition that companies would be listed at both LSE and KSE simultaneously. However this condition was removed in July 1991.

1988

To list the disinvestment industrial units on the stock exchanges, a Disinvestment Authority was formed, which planned to offer 10% shares of PIA and 20% shares of nationalized banks to the public along with disinvestment in 14 industrial units Three members of the Lahore Stock Exchange were nominated on Advisory Committee of the Authority. An important decision taken during the year was to move out the commercial activities from the Budget. WAPDA and OGDC were required to raise resources for their commercially viable operations directly from the market; rather than Govt. to borrow on their behalf During the year under review, the excess of income over expenditure increased by 189.48%. Three members of the Exchange were appointed on the National Disinvestment Authority (NDA). The building committee decided upon the modalities of allocating rooms in the New LSE building and members were offered space on a long lease of 99 years @ Rs. 300/- per sq.ft Members were requested to contact practicing firms of Chartered Accountants for their accounts audit as per the requirements of SEAP Rules 1971

1989

A dedicated line was set up between Karachi and Lahore Stock Exchange which enabled the transfer of voice and data quickly and accurately.

A fax machine was installed in the Exchange for the use of incoming and outgoing messages. The board of Directors of Lahore Stock Exchange decided to award 100 scholarships of Rs. 200 each, for one year to the poor and needy students. The Members Group insurance Scheme was increased from Rs. 1 Lac to Rs. 2 Lacs. First investment bank namely Cresbank was listed on the Lahore Stock Exchange. Tender documents comprising of drawings, bill of quantities, technical specifications and contract conditions were finalized by April, 1989. In order to project healthier financial standing of the working members the net capital balance requirement under SEAP rules was increased from Rs. 50,000/- to Rs. 2,50,000/-.

1990

The Exchange got a sanction of 400 telephones lines for members in the new building 55% of The Building Project was completed successfully In an Extra Ordinary General Meeting of Exchange, it was decided to increase the membership admission fee to Rs. 1 Million

1991

The Exchanges shares turnover showed an increase of 85% The passenger lifts were installed in the building A dedicated link between Karachi and Lahore Stock Exchange was installed which enabled the members and investors to monitor KSEs share prices in real time 95% of the Building project was completed

1992

Rooms in the new building were allotted on Feb 25th, 1992 to the members through open general balloting under the rules framed with the approval of the Corporate Law Authority. The office shifting to the new building in June and stock markets activities made this year as the most eventful year in the history of LSE. Trading sessions in the new building commenced from June 01, 1992. Prime Bank hired some space in the new building as the first tenant. Habib bank shifted its branch to the new building. The Clearing House operations were computerized.

Accounting had also been computerized to a large extent. A Central Depository Company was incorporated to provide custodial services in order to eliminate physical handling of share certificates and to remove the present bottleneck of time taken in transferring the shares. LSE actively participated in the amendment of Securities and Exchange Ordinance, 1969 by the Government. The depressed conditions of the Stock Market from February 1992 to October 1992 could also be attributed to a number of factors such as global recession in textile exports, increased supply of securities during the last 20 months, diversion of liquidity towards privatization and sometimes panic selling by the market players, investors, who had borrowed excessively at high cost and possibly beyond their means Civil construction of the new LSE building was completed Rules for the allocation of rooms to the members in the new LSE building were approved by the Board and CLA and duly notified in the Gazette of Pakistan The 5% shares of the Central Depository Company of Pakistan Limited were floated by KSE with collaboration of other financial institutions had been given to the LSE LSE decided to have Saturday as the weekly Non-Trading Day instead of Thursday LSE Telephone Exchange was declared operational and telephone connections including the intercom facilities were provided to members to facilitate their work In the process of computerization, a total of five (5) computers along with Lazer printers and accessories were procured Computerized trading hall was developed The EOGM held on October 17th, 1992 approved a special resolution to amend Article 64 of the LSE Articles Of Association by substituting the word and number fifteen (15) instead of the word and number eleven (11), thus the number of LSE directors had been increased from eleven to fifteen; inclusive the President. In EOGM it was also resolved to approve an investment by the LSE in CDC not exceeding Rs. 5,000,000/- from time to time subject to the approval of Board The Board of Directors established a Flood Relief Fund for the assistance and rehabilitation of flood affected people. Corporate Members were allowed to become member of LSE.

1993

After the allotment of booths to members by general balloting, the morning session of the trading was inaugurated by Mr. Khalil Masood, member CLA. As a result of this a record turnover of 2.1 million was recorded on the first day.

LSE share price index of 101 companies was started. The corporate law authority formed a committee for integrated computerization program at all the three Stock Exchanges The LSE paid Rs. 2.5 million for the 5% equity participation in the CDC of Pakistan. As per the requirement of CLA, Mr. Jamil Ahmad (Secretary) was promoted to the position of the first General Manager of the Exchange. The first library of the New Exchange Building was made functional in the Basement II of the premises The CLA approved the Provisional Listing Rules of companies at LSE

1994

The record turnover of 369.6 million shares was recorded, which showed an increase of 34% from the previous year. A separate clearing house with computerized clearing was setup. The exchange entered into an agreement for formation of Pakistan Credit Rating Agency PACRA along with IFC and IBCA limited of London. LSE started provisional listing of companies with provisional listing of PTC Vouchers on July 9, 1994. Local Area Networking (LAN) implemented by the Computer Graphics and Systems (CGS). To improve the working conditions of the trading floor about 34 more booths were provided in the hall. Tele-Stock an automated voice system was installed at LSE to obtain the latest stock quotations of the company of ones choice by placing a telephone call to the Tele-Stock computer at LSE.

1995

The year 1995 was the Silver Jubilee Year of Lahore Stock Exchange. The Lahore Stock Exchange celebrated its 25th Anniversary in June. The LSE with more than 600 listed companies and a market capitalization of $ 11 billion has positioned itself as an international financial center in Pakistan. Trading activities have been growing rapidly over the last few years and LSE has kept pace by modernization and automating its trading and clearance facilities. LSE entered into an agreement with Reuters for sending LSE Share Prices to 142 countries through its worldwide networks.

The BOD decided to get membership of, Federation of Euro-Asian Stock Exchanges (FEAS), Istanbul. LSE was awarded the Associated Membership of the FEAS on Oct 3, 1995 at Istanbul. The BOD in accordance with the instructions of the CLA introduced the T+3 Revolving System in the shares of the companies making public issue of up to Rs. 100 million under the system. The Corporate Law Authority fixed the exposure limit of 100,000 shares per trade day in the share trading on revolving settlement basis. The Board of Directors of LSE established a mutual contribution Welfare Fund to protect the LSE clearing House and the interest of the members of the Exchange.

1996

The stock market was affected due to political, economic and technical factors. However, the approval of IMF standby loan agreement of U.S $600 stabilized the market to some extent. The major reason for prolonged bearish sentiments in the Stock Market was the liquidity crunch and the absence of local institutions and individual support to the market. The LSEs ambitious computerization project was completed and the mock trading had been started since November, 1996. The Automated Trading was expected to start by December, 1996. The Legal Complaint Cell of LSE was established by the Board to redress the grievances of the general investors which successfully redressed 168 complaints of the investors in the year.

1997

The Stock Exchange has established investor protector fund. LSE acquired 10% shares of Central Depository Company of Pakistan which entitled the Exchange a permanent seat of the Board. Stock Exchange Became The First Fully Automated Stock Exchange Of Pakistan. LSE also became the first stock exchange in Pakistan to provide remote trading facilities from anywhere in Pakistan. Automated trading on LOTS was started on Jan 21st 1997 and was formally inaugurated by Caretaker Prime Minister of Pakistan Mr. Malik Miraj Khalid. The Trading members numbers at LOTS in 1997 increased to 105 from 70 members. A server room for more server machines was also built.

The Central Depository Company was formally inaugurated by the President of Pakistan Sardar Ahmed Farooq Khan Leghari and MCB was put into Central Depository System as First eligible security. The Board of Directors initiated a vast process of Computerization that was started in 1994. <The Pak Rupee was devalued by 8.7% in October, 1997 in order to boost the declining exports of the country and to be competitive in the international market.

1998

The Asian crises created an environment of uncertainty and lack of confidence in Pakistans economy. The exchange carried out major restructuring during the year under the provision of the capital market development plan, the restructured board was formed on April, 1998. The President and Vice President were re-designated as Chairman and Vice Chairman respectively. The Volume of Shares Turnover at LSE remained unaffected by bearish spell and touched new heights. The stock exchanges were severely affected due to the currency turmoil in the Asian region. This spillover effect resulted in bearish spell in the region. The economic recession affected the share prices downward movement in equity values for over a year. Market capitalization of ordinary shares declined by 46.29% as compared to previous year. The only sector in which Market Capitalization showed positive trend was Fuel and Energy. After the imposition of sanctions on Pakistan as result of May, 1998 nuclear blasts, agreement with IMF for $5.5 million dollars financial package was a very positive sign for the economy and the stock market. LSE started Two-Tier trading system to facilitate the investors to trade in scrips in the afternoon session. LSE presented itself on internet, the internet site address was www.lse.brain.net.pk The contract agreement for the civil works of Second tower project was finalized on Sept 12th, 1998. The foundation stone was laid by Honorable Chief Minister of Punjab Mr. Shahbaz Sharif, who appreciated the role of LSE at primary resource mobilization center. LSE held a 30% stake in the shareholding of PACRA, which had already crossed an important milestone of completing 100 credit ratings by Sept, 1998.

1999

The sanctions imposed due to the nuclear detonations affected the economy of Pakistan as well as the Exchange.

All the domestic and external factors, created a climate of uncertainty and lack of confidence on Pakistans Economy. Under the provision of Capital Market Development Plan of the Asian Development Bank, LSE re-structured itself by reducing the eighteen (18) Governing Board Directors to ten (10) elected Directors including Chairman and Vice Chairman, seven (7) NonMember Directors and, a full time Managing Director and Chief Executive. The Exchange enhanced its infra-structure by May 1999 and was able to provide four or even more than four trading terminals per Broker. The Exchange initiated a new system to display KSEs data on buildings data and video networks. The Securities and Exchange Commission of Pakistan (SECP) succeeded the CLA.

2000

LSEs MIS Department developed new in-house software for automated trading namely ULTRA TRADE. The new trading system finished dependence on foreign software suppliers resulting in saving almost $50,000 to $60,000 $60,000

LSE was awarded ISO-9002 Certification for quality control procedures. Amongst global emerging markets, Pakistani stock market was on top with the highest percentage gain achieved during the year. Another phenomenon was the revival of the Mutual Funds industry. LSE was the first Stock Exchange in Pakistan, which had started odd-lot trading through LOTS. LSE received Certification of Recognition of ISO 9001:2000 from Moody International Certification. Accounting department was completely computerized through an Accounting System prepared by the MIS department. LSE became the member of South Asian Federation of Exchanges (SAFE).

2001

LSE launched Internet Trading System (trading from terminals out of building) from July, 2001. LSE started afternoon trading sessions which proved to be tremendously successful. The National Clearing Company of Pakistan Limited (NCCPL) was incorporated to replace the separate and individual Clearing Houses operated by each of the three Pakistani Stock Exchanges.

2002

Pakistans stock market was declared as the Best Performing Stock Market of the World for the year 2002 by international magazine Business Week. Code of Corporate Governance was incorporated in the Listing Regulations. Banks and financial institutions were allowed to become Associate Member of LSE Clearing House. Trading in Futures Contracts was introduced. LSE launched new LSE25 Index replacing LSE101 index. LSE became equity partner in National Commoditys Exchange Limited (NCEL).

2003

The size and composition of LSE Board of Directors was reduced. The Board of Directors constituted 09 members, from which 05 were elected members of the Exchange, 4 were nonmembers nominated by SECP, and a Managing Director, who is also nonMember. Surveillance Department was established at LSE. LSE implemented Automated Trade Risk Filter (TRF) to monitor the members trading exposure on real time basis.

2004

The System Audit of LSE members introduced. Clearing and Settlement Operations of LSE were switched over to the National Clearing Company of Pakistan Limited. LSE opened countrys first remote Trading Floor at Faisalabad. LSE hosted SAFE Conference in Lahore and the chairmanship of SAFE, too, rested with the Lahore Stock Exchange.

2005

A landmark decision was taken in March 2005 to demutualize and to simultaneously integrate with Islamabad Stock Exchange to form a National Stock Exchange. LSE started Faisalabad Trading floor in November 2004 and inaugurated second Trading Floor at Sialkot on June 27th, 2005. LSE launched a series of investor education and awareness programs. Investigation & Enforcement Unit was setup to maintain a check on the market abuses (scope of Surveillance enhanced).

The concept of Unique Identification Numbers was introduced.

2006

MOU was signed with ISE for the establishment of Unified Trading Platform. The Finance Act 2006 included provisions for corporatization and demutualization of Exchanges in Pakistan. The Demutualization Committee of the Exchange recommended corporatizing LSE. VaR based Margining Regime was introduced.

2007

LSE Training Institute was established, the first formal course was launched on October 3rd, 2006. LSE & ISE started joint trading on a common platform through Unified Trading System (UTS). Implementation of procedure of Continuous Funding System (CFS) transactions in case of corporate actions.

2008

ULTRA TRADE sale to Ghana Stock Exchange, marking the first international sale of LSEs in-house developed software. Cash Settled Future Contracts were launched. Implementation of Financial Institutions (FIs) Margining System. LSE witnessed one of its most volatile trading years; when the index was frozen on August 27th 2008, for 101 days period, as was the case for other Stock Exchanges of Pakistan too.

2009

One Window Operations was instituted by LSE to facilitate the activity of inactive LSE members. Securities Lending & Borrowing Software was developed and sold. Client Level Margining was implemented. Debt Securities automated trading was launched. LSE started a separate Regulatory Division, enabling enhanced dealing with matters such as arbitration awards and litigation matters. Corporatization & Demutualization Act was passed by National Assembly.

2010

Clearing House and the Risk & Exposure Management Department, these two departments were merged to form the Risk and Clearing Department. IT division continued to service the automation and support of Ghana Stock Exchange Automated Trading System. Auto-Debit facility for payment of weekly charges & taxes levied on Brokers trading. Manual distribution of Market Access Fee (MAF) cheques to brokers regarding has been replaced with direct crediting of amounts to Brokers respective bank account. Interface for reporting of Off-System transactions carried out by Brokers has been developed and made available at the LSS. To cater to the requirements of Client Level Margining, interfaces have been made available in the LSS to allocate, reallocate and withdraw funds from individual clients' accounts. Multiple reports have been developed and made available in LSS to facilitate Brokers.

2011

MOU was signed between Lahore Stock Exchange and Tehran Stock Exchange fulfilling the purpose of increased co-operation, increased mutual understanding and assistance in various areas including technology. LSE introduced Marginal Trading System (MTS) in line with international leverage products. Lahore Stock Exchange (G) Limited (LSE) launched the Securities Borrowing and Lending Platform (SLB) developed for National Clearing Company of Pakistan Limited, the SLB provides a prior arrangement of borrowing securities to cover the short sale under the Ready Market scrips. Member Relations Department (MRD) was setup to facilitate member related issues. LSE also took the initiative to setup an independent Media and Public Relations Department to enhance relations with public and media personnel. Trainings and courses have been planned and carried out for the Capacity Building of Members. To bring transparency and timely settlement, all trades executed at Ultra Trade Platform shall be settled through Automation of Securities Settlement Mechanism whereby securities shall be moved in and moved out from perspective CDC Sub-Account maintained with the CDC participant of the Brokerage House. In 2009 SECP formed a committee to review the existing system of Debt Market. In light of recommendations of Review Committee on BATS, the exchanges were directed to enhance the existing interface of Bonds Automated Trading System, Removal of Circuit

Breaker, restriction of trade listed TFC, Disclosed Trading, Trade-to-Trade settlement, closing price mechanism etc.

LSE has successfully completed its 40 years and looks promisingly ahead into the future striving for continuous improvement and finer milestones.

Future Outlook The prime objective of the Exchange for the upcoming years shall be a 100% growth/value creation in the balance sheet size of the Exchange with a minimum of 20% increase in the EVA on year on year basis. LSE Board has already allocated some budget for the establishment of a nationwide association of stock brokers. The Exchange would initiate and successfully complete the process of corporatization in the near term (during one year). The process of full demutualization may be completed during the medium term (1- 3 years) due to tough global economic conditions. LSE is further striving to create a name for better investor's protection standards; to exercise effective supervision over the listed sector and the market participants, to continuously deliver value to its owners and stakeholders. The future strategic activities of the Exchange would be divided into three broad categories namely; the "Business Growth Strategy;" the 'Market Support Initiatives' and the 'Branding/Servicing Strategy. Board of Directors - 2011

Mr. Aftab Ahmad Khan Chairman

Mr. Aftab Ahmad Ch. Managing Director / CEO

Mr. Ammar-ul-Haq Elected Director

Ms. Bushra Naz Malik Nominee Director

Mr. Jahanzeb Mirza Elected Director

Engr. Mazhar Rafiq Elected Director

Mirza Ejaz Ullah Baig Elected Director

Mr. Muhammad Masud Akhtar Nominee Director

Mr. Mumtaz Hussain Syed Nominee Director

Mr. Naeem Anwar Elected Director

Managing Directors

Mr. Aftab Ahmad Ch. Since October 22, 2010 Mr. Aftab Ahmad Ch., has been the Managing Director/CEO of the Lahore Stock Exchange (G) Limited since October 2010. During the earlier capital market assignment, Mr. Aftab served as the Managing Director/Chief Executive Officer of Islamabad Stock Exchange, Pakistan. Mr. Aftab has also been involved with the Board level work related to the system designing & implementation of the domestic nationwide structure for the Securities Clearing and Settlement Company, as well as for the

regulatory and product development related work at the Board level for the operations of the only commodity exchange in Pakistan. In the recent past, Mr. Aftab has also served on the Board of Directors of other capital market institutions in Pakistan such as M/s JCR-VIS-a leading independent corporate credit rating agency in Pakistan, and the Institute of Capital Markets. Mr. Aftab holds an MBA degree from Nicholls State University, Thibodaux (LA), USA, and has also attended Executive Management Program at the Stanford University, USA. He has also attended many other securities market related programs both at home and abroad.

Mian Shakeel Aslam 2007 2010 Mian Shakeel Aslam was appointed the Managing Director of the Exchange during Nov 2007 and he continued in this position till Jun 2010. Before his appointment as the MD, Mr. Shakeel served as the General Manager of the Exchange for a period of about one year. During the earlier career, Mr. Shakeel served as the Vice President of Global Markets and Investment Banking Division at Merrill Lynch, London for about four years. From 1997 to 2002, he served as the Manager of the Financial Services Group of KPMG. Mr. Shakeels educational qualification included ACA from the Institute of Chartered Accountants England and Wales (ICAEW) and a Bachelor of Science (Hons) in Accountancy from University of East Anglia, UK.

Mr. Hamid M. Imtiazi 2004 2007 Mr. Hamid Imtiazi joined LSE during June 2004 and remained in this position for a period of over three years. Before joining LSE, Mr. Imitiazi had worked as the CFO/EVP of Prime Commercial Bank Ltd. from 1998 to 2004. He also held various management positions in the Financial Sector from 1979 onwards during which time, he served with various local and foreign companies.

Mr. Imtiazi is an old Ravian has a MBA degree in Finance from Pepperline University, Malibu USA.

Mr. Samir Ahmed 2001 2004 Mr. Samir Ahmed joined LSE as the Managing Director/CEO in July 2001 and remained in this position for about three years. Before joining LSE, he worked as the Senior Advisor to Dubai Financial Market as well as for the Government of Dubai from 1999 to 2001. He also spent five years in the equity brokerage industry, including the period from 1995 to 1998 when he headed the equities business of ING Barings in Pakistan. Mr. Samir Ahmed is an old Aitchisonian and has a Bachelors degree in Economics from University of Chicago and a Masters degree from London Business School.

Mr. Jamil Ahmad 1998 2001 Mr. Jamil Ahmad (Late) had the distinction of being the first Managing Director of the Exchange. Mr. Jamil Ahmad Joined LSE in 1986 and served as the Secretary of the Exchange for almost seven years, till his promotion to General Manager and then to the Managing Director/CEO of the Exchange. He remained with the Exchange till June 2001. Before joining LSE, he had worked as Financial Analyst for a period of eight years with ICC, Financial Surveys, London. He also participated in several projects for National Economic Development Organization (NEDO) of the Great Britain. He had also served for four years with Whinny Murray & Company, Saudi Arabia. He was an old Ravian and a Member of the Association of Accounting Technicians (MAAT) of the Institute of Chartered Accountants, England and Wales. LSE Board Committees - 2011

Every year the Board of Directors constitutes Board Committees to delegate specific advisory functions. These Board Committees provide vital feedback to the Board to assist it in making wellinformed decisions and policies of the Exchange. The Committees work within the defined TORs as approved by the Board to discharge their respective responsibilities/functions. Committees formed under the Articles of Association & General Regulations

1. Advisory & Arbitration Committee (Under General Regulation No. 24) Members
1. Rana Naveed Ahmed CRO Convener

2. Mr. Ahmed Naeem, Nominee Director, Reliance Capital (Pvt.) Ltd. 3. Mr. Javaid Iqbal, Nominee Director, Javed Iqbal Securities (Pvt.) Ltd. 4. Dr. Moatsim Billah, Nominee Director, Techno Fundamental Securities (Pvt.) Ltd. 5. Mr. Naeem Anwar, Nominee Director, Maan Securities (Pvt.) Ltd. 6. Syed Hassan Abid Zaidi, Nominee Director, Escorts Capital Ltd. 7. Mr. Waseem Ahmed, Nominee Director, Fairway Securities (Pvt.) Ltd. 8. Mr. Mujahid Nadeem Deputy General Manager 9. Mr. Nadeem Asghar Manager Member Relations 10. Mr. Salman Ali Bukhari Assistant Manager
11. Mr. Barkat Ali Anjum Assistant Manager, Media Relations

Secretary

Secretary Arbitration Committee

2. Arbitration Committee (Under Article 134) Members 1. Mian Tajammal Hussain 2. Mr. Habib ullah Sheikh, Nominee Director, Habib ullah Sheikh (Pvt.) Ltd. 3. Khawaja Imtiaz Ahmed, Nominee Director, INA Securities (Pvt.) Ltd.

4. Syed Asim Zafar, Nominee Director, Zafar Securities (Pvt.) Ltd. 5. Dr. Yasir Mahmood, Nominee Director, Yasir Mahmood Securities (Pvt) Ltd. Secretary

Company Secretary

3. Defaulters Committee (Under Article 104) Members

1. Mr. Javed Iqbal, Nominee Director, Javed Iqbal Securities (Pvt.) Ltd. - Convener

2. Mr. Afzal Rahat, Nominee Director, Rahat Securities Ltd. 3. Mr. Asif Baig Mirza, Nominee Director, ABM Securities (Pvt.) Ltd. 4. Mr. Habib Ullah Sheikh, Nominee Director, Habib Ullah Sheikh (Pvt.) Ltd. 5. Khawaja Imtiaz Ahmed, Nominee Director, INA Securities (Pvt.) Ltd. 6. Mr. Omar Khalil Malik Nominee Director, Networth Securities Ltd. 7. Mirza Ejaz Ullah Baig Nominee Director, Capital Vision Securities (Pvt.) Ltd. Secretary

Chief Regulatory Officer

4. Membership Committee (Under Article 103) Members

1. Mr. Jahanzeb Mirza, Nominee Director, S.D. Mirza Securities (Pvt.) Ltd. Convener

2. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd. 3. Ms. Bushra Naz Malik 4. Mirza Ejaz Ullah Baig, Nominee Director, Capital Vision Securities (Pvt.) Ltd. 5. Engr. Mazhar Rafiq, Nominee Director, M.R. Securities (SMC-Pvt.) Ltd. 6. Mr. Mumtaz Hussain Syed 7. Mr. Naeem Anwar, Nominee Director, Maan Securities (Pvt.) Ltd.

Secretary

Member Relations Officer

Committees formed under Code of Corporate Governance 5. Audit Committee Members

1. Ms. Bushra Naz Malik Convener

2. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd. 3. Mirza Ejaz Ullah Baig Nominee Director, Capital Vision Securities (Pvt.) Ltd. 4. Mr. Mumtaz Hussain Syed 5. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd. Secretary

Assistant Manager Internal Audit

6. Human Resources Committee Members

1. Mr. Mumtaz Hussain Syed Convener

2. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd.

3. Ms. Bushra Naz Malik.

4. Mr. Jahanzeb Mirza, Nominee Director, S.D. Mirza Securities (Pvt.) Ltd. 5. Engr. Mazhar Rafiq, Nominee Director, M.R. Securities (SMC-Pvt.) Ltd. Secretary

Acting Manager HR

Committee formed under UTS Regulations 7. Joint Steering Committee

The Committee shall be consisted of the following: i. Three (3) Members of LSE who are eligible to trade on UTS to be appointed by Board of LSE; 1. 2. 3. ii. iii. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd.

Three (3) Members of ISE eligible to trade on UTS to be appointed by Board of ISE; The Managing Directors of the LSE and ISE; and

Chief Technology Officer (CTO), by virtue of his office, who shall be a technical advisor to the JSC. Convener to be elected by the Committee itself. Secretary

Chief Information Officer

Other Advisory Committees 8. Building Committee Members

1. Mr. Zeeshan Dar, Nominee Director, Darson Securities (Pvt.) Ltd. - Convener

2. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd. 3. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd. 4. Mr. Hasan Ahmad Chaudhry, Nominee Director, Jamshed & Hasan Securities (Pvt.) Ltd 5. Mr. Javed Iqbal, Nominee Director, Javed Iqbal Securities (Pvt.) Ltd. 6. Khawaja Usman Arif, Nominee Director, Khawaja Securities (Pvt.) Ltd. 7. Mirza Ejaz Ullah Baig, Nominee Director, Capital Vision Securities (Pvt.) Ltd. 8. Mr. Omar Khalil Malik Nominee Director, Networth Securities Ltd. 9. Mr. Umair Butt Nominee Director, Dosslanis Securities (Pvt.) Ltd. Secretary

Project Manager

9. Company Affairs Committee Members

1. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd. - Convener

2. Mr. Asif Baig Mirza, Nominee Director, ABM Securities (Pvt.) Ltd.
3. Ms. Bushra Naz Malik.

4. Dr. Zafar Iqbal, Nominee Director, Horizon Securities (SMC-Pvt.) Ltd. 5. Mr. Fawad Dosslani, representative, Dosslanis Securities (Pvt.) Ltd. 6. Khawaja Imtiaz Ahmed, Nominee Director, INA Securities (Pvt.) Ltd. 7. Mr. Muhammad Ashraf Hussain Adhi, Nominee Director, Maha Securities (Pvt.) Ltd. 8. Mr. Muhammad Nadeem Ejaz, Nominee Director , Adeel & Nadeem Securities (Pvt.) Ltd. 9. Mr. Muhammad Rafiq, Nominee Director, Equity Master Securities (Pvt.) Ltd. 10. Mr. M. Tabassum Munir, Nominee Director, MTM Securities (Pvt.) Ltd. 11. Mr. Waseem Ahmad, Nominee Director, Fairway Securities (Pvt.) Ltd. Secretary

Assistant Manager Company Affairs

10. Corporatization & Demutualization Committee Members

1. Dr. Yasir Mahmood, Nominee Director, Yasir Mahmood Securities (Pvt.) Ltd. -

Convener 2. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd. 3. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd. 4. Mr. Ashraf Hussain Adhi, Nominee Director, Maha Securities (Pvt.) Ltd. 5. Dr. Arslan Razaque, Nominee Director, Dr. Arslan Razaque Securities (SMC-Pvt.) Ltd. 6. Mr. Habib Ullah Sheikh, Nominee Director, Habib Ullah Sheikh (Pvt.) Ltd. 7. Mr. M. Tabassum Munir, Nominee Director, MTM Securities (Pvt.) Ltd. 8. Mirza Ejaz Ullah Biag, Nominee Director, Capital Vision Securities (Pvt.) Ltd. 9. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd.

10. Syed Asim Zafar, Nominee Director, Zafar Securities (Pvt.) Ltd. Secretary

Deputy General Manager

11. Investment Committee Members

1. Engr. Mazhar Rafiq Convener 2. Mr. Aftab Ahmed Ch., MD.

3.

Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd.

4. Mr. Mumtaz Hussain Syed.

Secretary

Chief Financial Officer

12. IT Committee Members

1. Mr. Khurram Gulzar, Nominee Director, Value Stock Securities (Pvt.) Ltd. - Convener

2. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd. 3. Mr. Ali Raza Jafry, Nominee Director, Switch Securities (Pvt.) Ltd. 4. Mr. Amir Ilyas, Nominee Director, Amer Securities (Pvt.) Ltd. 5. Mr. Habib ullah Sheikh, Nominee Director, Habib Ullah Sheikh (Pvt.) Ltd. 6. Mr. Kashif Nisar, Nominee Director, Allied Securities (Pvt.) Ltd.
7. Engr. Mian Sajid Masood.

8. Dr. Moatsim Billa, Nominee Director, Techno Fundamental Securities (Pvt.) Ltd. 9. Mr. Nadeem Ijaz, Nominee Director, Adeel & Nadeem Securities (Pvt.) Ltd. 10. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd. Secretary

Chief Information Officer

13. IT Steering Committee

Members
1. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd. - Convener

2. Mr. Khurram Gulzar, Nominee Director, Value Stock Securities (Pvt.) Ltd. 3. Mr. Salman Shah: CEO- Softech Technologies Ltd.
4. Syed Asif Shah: CIO CDC. 5. Zafar Alvi: Chief Officer MIS SNGPL.

Secretary

Chief Information Officer

14. Legal Affairs Committee Members

1. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd. - Convener

2. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd. 3. Mr. Afzal Rahat, Nominee Director, Rahat Securities Ltd. 4. Mr. Jahanzeb Mirza, Nominee Director, S.D. Mirza Securities (Pvt.) Ltd. 5. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd. 6. Mr. Zeeshan Dar, Nominee Director, Darson Securities (Pvt.) Ltd. Secretary

Assistant Manager Legal

15. New Product, Seminars, Publications & Sports etc Members

1. Mr. Ali Naseer, Nominee Director, High link Capital (Pvt.) Ltd. - Convener

2. Mr. M. Tabassum Munir, Nominee Director, MTM Securities (Pvt.) Ltd. 3. Mirza Ejaz Ullah Baig, Nominee Director, Capital Vision Securities (Pvt.) Ltd. 4. Dr. Moatsim Billah, Nominee Director, Techno Fundamental Securities (Pvt.) Ltd.
5. Mr. Muhammad Amir Riaz.

6. Mr. Muhammad Arshad, Nominee Director, A.S. Securities (Pvt.) Ltd.

7. Mr. Muhammad Asghar, Nominee Director, Pearl Brokerage (Pvt.) Ltd. 8. Mr. Omar Khalil Malik , Nominee Director, Networth Securities Ltd. 9. Mr. Umair Butt, Nominee Director, Dosslanis Securities (Pvt.) Ltd. 10. Mr. Zeeshan Dar, Nominee Director, Darson Securities (Pvt.) Ltd. Secretary

Acting Manager HR

16. Tax Committee Members

1. Mirza Ejaz Ullah Baig, Nominee Director, Capital Vision Securities (Pvt.) Ltd.

Convener
2. Mr. Adeel Zafar, Nominee Director, Nominee Director, Adeel Zafar Securities (Pvt.)

Ltd. 3. Mr. Asif Baig Mirza, Nominee Director, ABM Securities (Pvt.) Ltd.
4. Mr. Habib ullah Sheikh, Nominee Director, Habib ullah Sheikh (Pvt.) Ltd. 5. Mr. Jahanzeb Mirza, Nominee Director, S.D. Mirza Securities (Pvt.) Ltd.

6. Mr. Muhammad Ilyaas Sethi, Nominee Director, Sethi Securities (SMC-Pvt.) Ltd. 7. Dr. Moatsim Billah, Nominee Director, Techno Fundamental Securities (Pvt.) Ltd.
8. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd.

9. Syed Hassan Iqbal, Nominee Director, MGM Securities (Pvt.) Ltd. 10. Syed Muhammad Ismail Abbasi, Nominee Director, Abbasi & Company (Pvt.) Ltd. 11. Mr. Usman Hameed Chaudhri, Nominee Director, NH Securities (Pvt.) Ltd. Secretary

Chief Financial Officer

17. Trading Affairs Committee Members

1. Mr. Naeem Anwar, Nominee Director, Maan Securities (Pvt) Ltd. - Convener

2. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd.

3. Mr. Amir Illyas, Nominee Director, Amir Securities (Pvt.) Ltd. 4. Dr. Arsalan Razaque, Nominee Director, Dr. Arsalan Razaque Securities (Pvt.) Ltd. 5. Khawaja Sami Rashid, Nominee Director, KSR Stock Brokerage (Pvt.) Ltd. 6. Mirza Ejaz Ullah Baig, Nominee Director, Capital Vision Securities (Pvt.) Ltd. 7. Mr. Muhammad Asghar, Nominee Director, Pearl Brokerage (Pvt.) Ltd. 8. Mr. Muhammad Ashraf Hussain Adhi, Nominee Director, Maha Securities (Pvt.) Ltd. 9. Syed Hassan Iqbal, Nominee Director, MGM Securities (Pvt.) Ltd. 10. Dr. Yasir Mahmood, Nominee Director, Yasir Mahmood Securities (Pvt.) Ltd. Secretary

Deputy General Manager Management Team

Mr. Farid Malik, CFA Chief Strategy Officer / Chief Operating Officer (General Manager) Mr. Farid Malik heads the Strategy and Operations functions of the Exchange. He has over 15 years of work experience and has worked on a number of infrastructure developments (IPPs), project finance, corporate finance, regulatory, administrative and operational assignments both in Pakistan and abroad. Mr. Malik has a rich background of the securities/ capital market industry having previously worked at LSE and the Securities and Exchange Commission of Pakistan. Mr. Malik is a graduate of the London School of Economics and a Chartered Financial Analyst (CFA) Charter-holder since 2001. He has also attended a number of international and local management courses, seminars and workshops. Additionally he also currently serves on the Board of the Privatisation Commission and as an Adjunct Faculty Member at Suleman Dawood School of Business - LUMS. He is representing LSE on the Board of Directors of Pakistan Credit Rating Agency Limited.

Rana Naveed Ahmed Company Secretary Rana Naveed Ahmed joined LSE in 1992 as Assistant Secretary. He started his work as Secretary of the various Board Committees in addition to handling Investors' complaints. He has been the ISO Coordinator and prepared the Quality Manual and relevant documents/procedures for ISO 9001 certification of LSE. He was promoted as Manager Company Affairs in 2006 and dealt with the new listings and enforcement & compliance of Listing Regulations. In the year 2011, he was promoted as Company Secretary. He holds Master Degree in Commerce from Hailey College of Commerce, University of the Punjab. He has worked as a member of project team of the study project on "Strengthening Stock Exchange Listing Regulations in Member Countries", undertaken by South Asian Federation of Exchanges (SAFE) and has visited the Stock Exchange of Mauritius in 2003. He has also attended various courses/conferences on HR management, Corporate Governance and Corporate Affairs. Before joining LSE, he worked for 2 years in Daily Jang as Accounts Assistant.

Mr. Khurram Zafar Chief Information Officer Mr. Khurram Zafar heads the Technology Services Division entrusted with maintaining LSE's position in the national capital markets landscape as a technology innovator. Prior to joining LSE, Mr. Zafar worked for Beaconhouse National University as a visiting faculty member endeavoring to inculcate the spirit of entrepreneurship in BNU's graduating BSc Honors students. Before his stint in the field of academia, Mr. Zafar was Co-Founder and Chief Technology Officer at Insight Technologies, Inc and Epiance, Inc - both Silicon Valley based software product companies with operations in Pakistan and India respectively. Prior to that, as Co-Founder and Vice President of Technology of a global technology services company, e-Force, Inc., Mr. Zafar led numerous enterprise-wide, strategic initiatives of Fortune 500 companies like VISA, DHL, AT&T, Cingular Wireless, Agilent, Sony, Chrysler, IBM, British Telecom, Merrill Lynch and Bank of America. It

was during his stint at e-Force, that Mr. Zafar developed United States' first retail, risk derivatives exchange from a concept into a fully operational reality. Before e-Force, Mr. Zafar was a sought-after technology consultant and led several technology projects at Northern Telecom, Paging Network, and Hoechst Celanese. Mr. Zafar did his Bachelors in Computer Engineering from one of Canada's leading engineering institutions, McGill University. While at McGill, Mr. Zafar won an IBM sponsored software development contest spanning over 1500 contestants from all US based Ivy League universities and top Canadian universities. He is also a Prentice Hall published author of an awardwinning book on Wireless Application development. Mr. Zafar continues to serve on advisory boards of multiple technology start-ups and has been an investment advisor to leading US based venture capital firms like Norwest, Capital Z, Greylock and GE Capital. MEMORANDUM OF ASSOCIATION (GUARANTEE) LIMITED OF LAHORE STOCK EXCHANGE

I. The name of the Association is Lahore Stock Exchange (Guarantee) Limited (hereinafter referred to as the "Exchange"). II. The registered office of the Exchange shall be situated in the province of Punjab. III. The objects for which the Exchange is established are to undertake in or outside Pakistan any or all of the following: 1. To conduct, regulate and control the trade or business of buying, selling and dealing in shares, scrips, participation term certificates, Modaraba certificates, pre-organization certificates, and securities, tocks, bonds, debentures, debenture stocks, Government paper, loans and any other instruments and securities of like nature including but not limited to Special National Fund Bonds and documents of a similar nature issued by the Government of Pakistan or any institution or agency authorised by it. 2. To maintain high standards of commercial honour and integrity, to promote and inculcate honourable practices and just and equitable principles of trade and business, to discourage and to suppress malpractices, to settle and decide points of practice, disputes, questions of usage, custom and courtesy in the conduct of trade and business. 3. To establish and maintain or to arrange with or through a Bank a Clearing House for the business of the Exchange, and to frame regulations under which such Clearing House shall function. 4. To make and adopt regulations regarding the admission, conduct, expulsion and suspension of members and the mode and conditions in, and subject to, which the business of the Exchange shall be conducted and from time to time, as may be necessary, to alter, add to, repeal and substitute such regulations or any of them and to make and implement any new, amended or

additional regulations as may be considered necessary or desirable for the purposes aforesaid. Such regulations may include but not be limited to: a) the maintenance and use, or prohibition of the use, of the Exchange or Clearing House whether in the case of the general body or particular class or classes of persons or, any individual or firm or company using the same and the nature and times of such user; b) Determining the classes of contracts and the obligations in respect of which differences may be paid and payments and deliveries made through a Clearing House; c) determining the list of securities in which transactions may take place on the Exchange for ready and cash, or forward, delivery and carry forward or "Budla contract"; d) Fixing and declaring market rates and settlement rates and dates; e) Determining the opening and closing of the Exchange or market; f) Determining the forms or contracts to be used; g) The marking, performance and determination of contracts; h) Determining the consequences of death, supervening incapacity, insolvency or breach of contract; i) The prevention of, and dealing with, "corners" or "Bear raids" in any or every kind of share or security so as to prevent, stop or mitigate speculation inimical to the purposes of the Exchange; j) Regulating the business between members, inter se or between any of them on the one hand and their constituents on the other hand or between any of the members on the hand and their sub-brokers on the other hand or between sub-brokers on the one hand and their constituents on the other hand; k) The fixing of brokerage and commission; l) The levying, compelling payment of and recovering fines, fees, penalties and subscriptions in connection with any of the objects of the Exchange; m) The arbitration and settlement of all manner of disputes or difficulties whether between members and/or their constituents and or sub-brokers in connection with the business of the Exchange; n) The provision for disciplinary action, including but not limited to warnings, fines, suspension and expulsion from membership of the Exchange; o) The appointment, tenure and conduct of committees;

p) Any purpose considered necessary or desirable in the interests of the Exchange; and from time to time, as may be necessary, to alter, add to, repeal and substitute such regulations or any of them and to make and implement any new, amended or additional regulations as may be considered necessary or desirable for the purposes aforesaid. 5. To apply for and obtain from the Federal Government a Charter for the Exchange or to apply for and obtain from the Federal Government recognition of the Exchange as a recognized Stock Exchange and for such purpose to make and submit for the regulation and control of the business of the Exchange and furnish such information as the Federal Government may require. 6. To provide forms and contracts, compulsory or permissive, and to regulate the making, carrying out and enforcement of contracts. 7. To acquire, collect, preserve and disseminate statistical or other information in connection with the business of the Exchange. 8. To collect, collate and edit material for dissemination, and to undertake the printing and publishing of brochures, pamphlets, quotations, reports, journals, periodicals or other works of publication in connection with, or for the furtherance of, the objects of the Exchange. 9. To purchase, take on lease or in exchange, hire or otherwise acquire any immovable or movable property, including but not limited to land, buildings and easements, and any rights and privileges which the Exchange may think necessary or convenient for its business. 10. To erect, construct, maintain and provide a suitable building or buildings, halls or rooms for the conduct of the business of the Exchange and to alter, add to or remove any such building or buildings as may be considered necessary or desirable for the use or convenience of the Exchange or its members, and to regulate admission to and use thereof. 11. To insure, sell, improve, manage, develop, lease, mortgage, dispose of or otherwise deal with all or any part of the property of the Exchange. 11- A. To develop software to support Exchanges business and trading in various market segments including securities, derivatives, options, contracts and other instruments and to modify, sell, export or grant license in the software and to enter into cooperation or joint ventures for this purpose and charge license fee in respect of any such software or information technology product developed and owned by the Exchange and undertake any other incidental or allied services thereto. 12. To advance the moneys of the Exchange upon such securities or without any security and at such terms as may from time to time by determined, subject to law. 13. To invest the moneys of the Exchange in such manner as may from time to time be determined.

14. To borrow or raise moneys in such manner as the Exchange shall think fit, except by the creation and issue of debentures or debenture stock charged upon all or any of the Exchange's property (present and future) and to purchase, redeem or pay off any such securities. 15. To receive money, without interest, by way of penalty, fines subscriptions, entrance or membership fees, rents, license fees, listing fee from members, companies or any other persons for the objects of the Exchange, and to put the same to any use deemed fit. 16. To create, raise, collect, apply and appropriate funds for the benefit and welfare of members and employees of the Exchange and the surviving heirs of such members and employees in case of death or incapacity of such members or employees and to do all acts, deeds and things required, incidental to or necessary for the purpose of giving effect to the objects of the said funds and for the administration and management thereof. 17. To act in such statutory, supervisory, official or public capacity in relation to securities, investments financial matters as may be considered necessary or desirable. 18. To subscribe to, become a member of and co-operate with other stock exchanges or institutions, whether incorporated or not, whose objects are altogether, or in part, similar to those of the Exchange, and to procure from and communicate to any such institution such information as may be likely to further the objects of this Exchange or, as may be considered necessary or desirable. 19. To promote, support or propose legislative or other measures for any activities affecting the business of the Exchange or any interest therein. 20. To enter into any arrangements with the Government or Government agency which may seem conducive to the objects of the Exchange or any of them, and to obtain from the Government or such agency any powers, rights, licenses, privileges or concessions which the Exchange may think fit and desirable to obtain; and to carry out, exercise and comply with any such arrangements, rights, licenses, privileges and concessions. 21. To bring, defend or prosecute any suit, action, proceeding, application or arbitration on behalf of the members or the Exchange as may be considered proper or conducive to the objects of the Exchange. 22. To sign, seal, execute and deliver all instruments, deeds, documents and writing whatsoever usual, necessary or expedient in relation to the Exchange or its interest whether as principals or agents, trustees or beneficiaries, guarantors, consenters or otherwise. 23. To take any action considered necessary to raise the status, or to promote the efficiency of the Exchange.

24. To do all such other acts and things as may be considered incidental or conducive to the above objects or any of them. IV. The liability of the members is limited. V. Every member of the Exchange undertakes to contribute to the assets of the Exchange in the event of its being wound up while he is a member, or within one year afterwards, for payment of the debts and liabilities of the Exchange contracted before he ceases to be a member, and the costs, charges and expenses of winding up and for the adjustment of the rights of the contributories among themselves, such amount as may be required not exceeding one thousand (1,000) rupees. VI. The income and property of the Exchange when ever derived shall be applied solely towards the promotion of the objects of the Exchange as hereinabove provided and no portion thereof shall be paid or transferred, directly or indirectly by way of dividend or bonus or otherwise howsoever, by way of profit to the persons who at any time are or have been members of the exchange or to any of them or to any person claiming through any of them. Provided that nothing herein contained shall prevent the payment of any remuneration to the employees of the Exchange or other persons in return for services actually rendered to the Exchange or of the reimbursement of conveyance and travelling expenses of the employees of the Exchange or, where specifically authorized by the Board of Directors of the Exchange, of the reimbursement of conveyance and travelling expenses of any Director of the Exchange. Provided further that nothing herein contained shall prevent the Exchange from making payment of claims to any member of the Exchange out of the assets of a defaulting member. We, the several persons whose names and addresses are subscribed hereunder are desirous of being formed into an Association in pursuance of this Memorandum of Association. NAMES 1. 2. 3. 4. 5. 6. 7. Mr. Naseer A. Shaikh Mian Rafique Saigol Mr. Tajammal Hussain Mr. Aslam Amin Mr. Nisar Ahmad Mr. Pervez Ahmad Syed Babar Ali

LSE Index LSE-25 | Lahore Stock Exchange The Lahore Stock Exchange Twenty Five company index also calculates the performance of stocks assuming that all rights issues and bonus share issues only increase the listed capital. In the case of bonuses or rights the prices of the shares are not adjusted as they are in the case of the LSETRI. However, the LSE25 assumes that dividends paid out by a component company are not reinvested. In summary, in the LSE25, no price adjustments are made when any component company issues cash dividends. The Lahore Stock Exchange Total Return Index calculates the performance of stocks assuming that all payouts are reinvested in the index on the ex-date. The LSETRI assumes that if a component company issues bonus shares or announces a rights issue it will increase the listed capital. Additionally, the LSETRI also assumes that all pay-outs by a component company are 100% reinvested in the index. Therefore, the LSETRI is adjusted against such payouts announced by any of index constituents on its ex-date allowing the index value to remain comparable over time. Some of the most notable Stock Brokers in Lahore Stock Exchange include: Mubashar Latif (President), Azan Mubashar (Executive Vice-President), Abubakar Mubashar (C.E.O).