KARACHI STOCK EXCHANGE

Presented by: Zuhaib Ahmed

History
The Karachi Stock Exchange (KSE) was established on 18th September, 1947 . Converted and registered as a Company Limited by Guarantee on 10th March, 1949. Initially,90 members were enrolled . Only 5 companies were listed with a paid up capital of Rs. 37 million .

Cont.
By the end of December 1991, a key institution in the financial sector of Pakistan and today has a membership strength of 200 with almost 140 active members trading in 751 listed companies, having a list capital of Rs. 122.709 billion (US$ 4.0 billion) with a market capitalization of Rs. 355.359 billion (US$ 11.4 billion) as on October 31, 1996.
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Cont.
There is an average daily turnover of approximately 13.0 million shares. Best Performing Stock Market of the World for the year 2002 . On November 07, 2005, 662 companies were listed with the market capitalization of Rs. 2,467.60 billion (US $ 41.38) having listed capital of Rs. 465.01 billion (US $ 7.79 billion).
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NOW
Listed companies 724 Securities listed on the exchange 752 Ordinary share 724 Capital US$ 4,646 million Average daily turnover 142 million shares with average daily trade value US$ 78 million Fully automated trading system with T+3 settlement cycle
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 Trading takes place on an open outcry system. Each quoted security being traded in sequence. Bids and offers are shouted by members' trading clerks, with transactions being noted by KSE and recorded on board. When a bid and offer matches, a transaction takes place. The KSE has already computerized its clearing operations and the market information display system.
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DECADEWISE PROGRESS

MARKET INDICES
KSE began with a 50 shares index . On November 1, 1991 the KSE100 was introduced and remains to this date the most generally accepted measure of the Exchange. The KSE-100 is a capital weighted index and consists of 100 companies representing about 86 percent of market capitalization of the Exchange.
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BOARD OF DIRECTORS
The KSE is run by a Board of Directors that consist of 10 members including Managing Director . Out of these, 5 Directors are elected from amongst 200 members of the Exchange and 4, non member Directors are nominated from various trade and professional bodies. The Chairman is elected by Board from amongst the elected Directors.
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BOARD OF DIRECTORS

Mr. Mohammad Yaseen Lakhani-Chairman Mr. Muhammad Yaqoob Memon-Managing Director Mr. Muhammad Siddique Dalal-Director Mr. Dawood Jan Muhammad-Director Mr. Shehzad Chamdia-Director Mr. Abid Ali Habib-Director Mr. Farrukh S. Ansari-Director Mr. M.J. Jaffar-Director Mr. Zafar Iqbal-Director Mr. Sher Afghan Malik-Director
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MEMBERSHIP
Membership of KSE is limited and fixed at 200 and prospective members have to purchase a seat from existing members . Since June 1990, membership has been opened to corporate entities. Corporate members are required to have a minimum paid up capital of Rs. 20 million and are also subject to criteria fixed by the Board.
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Criteria for Individual Membership

No person shall be eligible to be admitted as Member, if 1. He/she is less than 21 years of age . 2. He/she is not a citizen of Pakistan . 3. He/she has been adjudicated a Bankrupt. 4. He/she has been at any time expelled or declared a defaulter by any Stock Exchange or Trade Association in Pakistan .
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Cont.
The minimum qualification for an applicant for the Membership shall be "Graduation". (In the case of a person holding at least 5 years experience of working as an agent with any of the members of the KSE or a former member of the KSE who had resigned on voluntary basis without any cause of complaint or claim, may be allowed waiver of this requirement by the Board).
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