Introduction

Lahore Stock Exchange is the technologically advanced Stock Exchange of Pakistan situated in the largest populous
Punjab province which caters to the needs of entrepreneurs for raising capital and provides investment opportunities to
the investing public. LSE is fully committed to provide transparent, efficient, economic, well equipped and investor
friendly environment for the promotion of capital market in Pakistan.
Activities at LSE have increased significantly in all operational areas since its inception. Over the years, LSE has 497
listed companies with total listed capital of Rs. 850 billion having market capitalization of Rs. 3.134 trillion as on
February 14, 2011. 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.

History & Milestones

Lahore Stock Exchange (LSE) was incorporated in October 1970 under the Securities and Exchange Ordinance,
1969 as a company limited by guarantee. It initially had 83 members and was housed in a rented building in the
crowded Bank Square area of Lahore. Inadequacy of space, crowded area and severe limitations of communications
cramped its growth. Only a few of all the members were active, and they too had to work through KSE, or be limited to
do business in Bonus, Vouchers and Bonds. After construction of its own building located at 19-Khayaban-e-Aiwan-e-
Iqbal, Lahore, there was sufficient space, modern facilities, and all the needed communications at this new location.
The move could not have been at a more opportune time. The Government of Pakistan had embraced the market
economy policy. Deregulation was rapidly underway. Privatization of nationalized, and a part of public sector industries
was speedily moving ahead. Asia was identified as the future centre of world growth. Lahore Stock Exchange was
prepared to contribute its full share in this growth. 21 new members including 6 corporate members were inducted in
1994, bringing the number of members 150. Some members have converted their individual memberships into
corporate memberships. The activities of the Exchange have increased in all areas since inception and it has become a
key institution of the financial sector of Pakistan.
Important milestones in the history of LSE are as under:
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.

1992

 LSE shifted to its new building.

 Corporate Members were allowed to become member of LSE.

1993

 Central Depository Company of Pakistan Limited (CDC) was incorporated to manage and operate the Central
Depository System (CDS).

1994

 LSE embarked upon the computerization program.

 Pakistan Credit Rating Agency (PACRA), the first credit rating agency was established.

1995

 LSE introduced T+3 settlement system.

 Member's Contribution Fund was established.

1996

 LSE was the first Exchange in Pakistan to introduce automated trading.

1997
 Asian Development Bank approved two loans totaling US$255 million for the Capital Markets Development
Program.
 The process of restructuring of CLA was initiated.
 Investors Protection Fund was established.

1998

 First restructuring of LSE Board of Directors with induction of 5 outside Directors and appointment of
independent Managing Director.

1999

 The Securities and Exchange Commission of Pakistan (SECP) succeeded the CLA.

2001

 LSE launch Internet Trading System.

 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

 Code of Corporate Governance was incorporated in the Listing Regulations.

 LSE implemented automated Trade Risk Filter (TRF) to monitor the member's trading exposure on real time
basis.
 Banks and financial institutions were allowed to become Associate Member of LSE Clearing House.
 Trading in Futures Contracts was introduced.
 LSE launched new LSE-25 Index.

2003

 The size and composition of LSE Board of Directors was changed. The Board of Directors constituted 10
members, of whom 5 are elected members of the Exchange, 4 are non-members nominated by SECP, an a Managing
Director, who is also non-Member.
 Surveillance Department was established at LSE.

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 first out stationed Trading Floor at Faisalabad.

2005

 LSE opened second Trading Floor at Sialkot.

 LSE launched a series of investor education and awareness programs.
 Investigation & Enforcement Unit was setup to maintain a check on the market abuses.

2006

 LSE Training Institute was established.

 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 to corporatize LSE.

2007

 LSE & ISE started joint trading on a common platform through Unified Trading System (UTS).
 2008

 Ultra Trade sold to Ghana Stock Exchange.

 LSE undertaken to implement Oracle Financials.