Introduction History Growth & Progress Board Of Directors Investor Specific Different Sectors In Stock Exchange Membership I. Individual Member II. Corporate Membership Fees For Listing I. Initial Listing Fees II. Annual Listing Fees Top 15 Companies of Karachi Stock Exchange KSE Play a Key Role in Pakistan Economy Conclusion Refrences
4 Introduction The Karachi Stock Exchange or KSE is stock exchange located in Karachi, Sindh, Pakistan. Founded in 1947, it is Pakistan's largest and oldest stock exchange, with many Pakistani as well as overseas listings. Its current premises are situated on Stock Exchange Road, in the heart of Karachi's Business District. 5 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
2001, it had grown to 1,770 points
Best Performing Stock Exchange in the Entire World in 2002
KSE-100 index touched the highest ever benchmark of 14,814 points onDecember 26,2007, a day before the assassination of former Prime Minister Mohtarma Benazir Bhutto
Badly Affected From Global Financial Crisis of 2008-2009
In the tenure of PML-N Stock exchange performane was Extremely Better from the Rest of Govts In pakistan history
6 Growth and Progress
Listed companies 653, securities listed on the exchange 692: ordinary share653, Preference shares 14 and debt securities (TFC's) 25.
Listed capital Rs.750,477.55 million (US$ 9,499.72 million).
Market capitalization Rs.1,858,698.90 million (US$ 23,527.83 million).
Average daily turnover 146.55 million shares with average daily trade value Rs.14,228.35 million (US$ 180.11 million).
Membership strength at 200.
Corporate Members are 187 out of which 9 are public listed companies.
Active Members are 163.
7 Board of Directors The KSE is run by a Board of Directors that consists 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 and appointed by SECP from amongst the professionals belonging to various trades and professions. The Chairman is elected by the Board from amongst the non-member Directors 8 List of Board Of Directors Mr. Muneer Kamal (Chairman) Mr. Nadeem Naqvi (Managing Director) Mr. Abdul Majeed Adam (Director) Mr. Kamal Afsar (Director) Mr. Shazad G. Dada (Director) Mr. Abid Ali Habib (Director) Mr. Muhammad Yasin Lakhani (Director) Mr. Abdul Qadir Memon (Director) Mr. Asif Qadir (Director) Mr. Mohammed Sohail (Director) Syed Muhammad Shabbar Zaidi (Director) 9 The following plans and tax incentives are available to both investors and listed companies. Foreign Investor - specific:
The foreign investors are freely allowed to operate in the capital market without any retention period. There are no restrictions on the extent of foreign ownership stake and also no limit for holding the shares for trading purposes. Funds invested in the capital market are freely transferable along with dividend income. Foreign investors are treated at par with local investors in tax treatment.
10 Local Investor specific: Dividend income is taxed as a separate block of income in the hands of individual shareholders Any income derived from TFCs is subject to income tax with effect from income year 2001 2002.
Capital gains on sale of listed securities are exempt from income tax up to they year 2010. This exemption is available since 1974.
The dividend is subject to withholding tax at 10%
11 Different Sectors in KSE All the Listed Companies are Categorized In various Business Sectors. There are Total 36 Sectors Listed in Karachi stock exchange, out of these 32 sectors contribute to market Capitalization(excluding Future Contracts).Rest of 4 Sectors are Allocated for Indexes and Bonds Etc. 12 Membership Criteria For Individual Membership No person shall be eligible to be admitted as Member, if: He/she is less than 21 years of age; He/she is not a citizen of Pakistan; He/she has been adjudicated a Bankrupt; or a Receiving Order in Bankruptcy has been made against him/her, or he/she has proved to be insolvent even though he/she has obtained his/her final discharge He/she has compounded with his/her creditors, unless he/she has paid hundred paisa's in the rupee He/she has been convicted of an offence involving fraud or cheating or dishonesty or any other indictable criminal offence The minimum qualification for an applicant for the Membership shall be "Graduation"
13 Criteria For Corporate Membership 1. The Corporate Body applicant for membership must be a company or a statuary corporation or a body corporate; have a minimum issued and paid-up capital of Rs.20 million 1. At least two Directors of the corporate membership in cluding the Chief Executive must have a minimum academic qualification of "Graduation 2. The membership application shall be accompanied by an auditors certificate confirming that the company maintains a net capital balance/net assets value of at least Rs. 2,500,000/- (excluding the value of membership card). 3. The Chief Executive and Nominee Director must have at least 3 years stock market experience 4. In case the equity of the company is subscribed by foreign participants; No Objection Certificates from State Bank of Pakistan and Ministry of Finance; isto be furnished. 14 Fees at the Start of Listing is to one twentieth of one percent of the total value of Security. Annual Fees for lisitng Which Starts from 1st July and ending on 30th June next, pay a sum of Rs. 50,000/- (Rupees fifty thousand only) as non- refundable service charges. 15 Top 15 Companies of Karachi Stock Exchange Number Company Name Weightage (%) Market Capitalization (PKR) 1 OGDCL 14.14 550,948,930,000 2 MCB 7.17 279,583,150,000 3 National Bank of Pakistan 5.43 211,726,900,000 4 Pakistan Petroleum 5.06 197,201,080,000 5 Standard Chartered Bank 4.41 171,704,800,000 6 PTCL 4.28 166,810,800,000 7 United Bank Limited 4.13 161,025,160,000 8 Jahangir Siddiqui & Company 2.66 103,600,000,000 9 Pakistan State Oil 2.08 81,034,440,000 10 Allied Bank Limited 2.01 78,371,670,000 11 Nestl Pakistan 1.93 75,280,250,000 12 Pakistan Oilfields 1.71 66,824,220,000 13 Fauji Fertilizer Company 1.68 65,607,390,000 14 ABN AMRO 1.63 63,666,370,000. 15 Engro Chemical 1.45 56,492,990,000 16 KSE Play a key Role in Pakistan Economy Pakistans largest tax payer and in the fiscal year 2006- 2007 contributed over Rs. 4 billion towards the national exchequer. Also in the 2012 by Paying More Tax In entire Pakistan Listed Companies contribute over 10% of total revenue collected by the Government of Pakistan KSE brokers on average pay more than 50% of their profit before tax as presumptive tax Our investors pay 10% tax on dividends. 17 Karachi Stock Exchange is The Main Financial Regulator and Serve as an Important Financial intermediary in our Economy and through Karachi Stock Exchange Different Investors are Met with in the Country as well as in the entire world. 18 Discussion With Friends http://www.kse.com.pk http://www.Scribd.com http://www.webcache.googleusercontent.co m http://www.Vebopedia.com http://www.Googleimages.com 19 Contributions Data is Collected by all Group Members Syed Taimur Content Writer , Leader of the Group & Helps in Making presentation and Assignment Nazish Shahzadi Helps in Content Writing and Making Presentation Atitizaz Ahmad Financial Support and Helps in Making Assignment Arsalan Rahim Re-Arrangement of Assignment & Presentation