STOCK EXCHANGES IN PAKISTAN

There are number of stock exchanges in Pakistan

Karachi Stock Exchange
INTRODUCTION TO THE KSE MARKET
The Karachi Stock Exchange (KSE) was established on 18th September, 1947. It was
later converted and registered as a Company Limited by Guarantee on 10th March, 1949.
Initially, 90 members were enrolled, however, only half a dozen of them were active as
brokers. Similarly only 5 companies were listed with a paid up capital of Rs. 37 million.
Now KSE has emerged as the key institution of the capital market of Pakistan with:-

Listed companies 724, securities listed on the exchange 752: ordinary share 724,
Preference shares 5 and debt securities (TFC's) 23
Listed capital US$ 4,646 million
Market capitalization US$ 7,746 million
Average daily turnover 142 million shares with average daily trade value US$ 78
million
Membership strength at 200
Corporate Members are 92 out of which 9 are public listed companies
Active Members are 133
Fully automated trading system with T+3 settlement cycle
Deliveries through central depository company
National Clearing and Settlement System in place

Lahore Stock Exchange

INTRODUCTION TO THE LSE MARKET
Lahore Stock Exchange (Guarantee) Limited came into existence in October 1970, under the
Securities and Exchange Ordinance, 1969, of the Government of Pakistan in response to the
needs of the Provincial metropolis of the Punjab. Only 83 members had its memberships and it
was housed in a rented building in the crowded area of Bank Square in exotic city of Lahore.
The number of members has increased from 83 to 150 over a period of 25 years.
The past seven years have seen Lahore Stock Exchange come to its own. Business has been
steadily on the increase. A modern Management Information System, (MIS) has been firmly in
place. Clearing House activities are fully computerized, computer ordering has been
implemented.
LSE has set up a credit rating company named "Pakistan Credit Rating Agency (Pvt) Limited",
(PACRA), in a joint venture with International Finance Corporation (IFC), and IBCA Limited of
London.
Islamabad Stock Exchange
INTRODUCTION TO THE ISE MARKET
The Islamabad Stock Exchange (ISE) was incorporated as a guarantee limited Company on
25th October, 1989 in Islamabad Capital territory of Pakistan with the main object of setting up
of a trading and settlement infrastructure, information system, skilled resources, accessibility
and a fair and orderly market place that ranks with the best in the world. The purpose for
establishment of the stock exchange in Islamabad was to cater to the needs of less developed
areas of the northern part of Pakistan.
At present there are 103 Members out of which 29 are corporate bodies including commercial
and investment banks, DFIs and brokerage houses. The other 74 Members are individual
persons.
Since the inception of automated trading system which is called ISECTS the trade volume is
multiplying day by day and the average daily turnover has now crossed the figure of 7.5 million
shares. The automated system which was indigenously developed replaced the outcry system
in 1997. Now all the listed securities are traded through the ISECTS. The system of physical
handling of shares and securities is being phased out and majority of the scrips are settled
through Central Depository Company of Pakistan Limited.
At the moment there are 285 companies/securities listed on the Exchange with an aggregate
capital of Rs. 155,352.618 million. The market capitalization was Rs. 209,360.670 million (US $
4,551.132 million) as on 10-09-98