1. Karachi Stock Exchange Yesterday
 Incorporated on March 10, 1949
 Premier Stock exchange of the country
 Started with 5 companies that had a paid up capital of
Rs. 35.71 million
 Trading was done through an open-out-cry system
 The first index was the KSE 50 Index
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2. Karachi Stock Exchange Today
 Exchange owned by 200 members
 590 companies listed
 4 indices
 $36.96 billion market capitalization
 Modern Risk Management System
Var Based Margin Calculation
Pre Trade Margin Verification
Client Level Margining System
 KSE is FIX Compliant
Electronic Trading through KATS
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3. Technology Built with Leaders
• With continual investment, the • Key Technology Partners
KSE has one of Pakistan’s most include:
advanced technology platforms
• Real-time Data Recovery
System in place (Business
Continuity Protocols at KSE
Server and KSE Network level
in development)
• 1+1 Redundancy
• Sophisticated IT architecture to
facilitate speedy execution of
trades
• Inhouse development of all
trading platforms and systems
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4. Karachi Stock Exchange Tomorrow
 Broad based investor participation
 Publicly Listed Company with strategic investor
 Cross border listings of companies
 Opening up of branches in other cities and in the region
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5. The KSE has an independent Board of Directors with
representation from the Members & the Corporate
Community
• Consists of 10 members
 5 elected member directors
 4 non member directors appointed by SECP
 Represent leaders of the corporate community
• Managing Director is ex-officio member of the board
• Chairman is elected by board out of non member directors
• The BOD meet once a month to debate policy and review
performance
• A number of Board committees also meet on a regular basis to
advise management on adopting best practices

6. Stock market regulatory authorities actively monitor
market
• The Securities and Exchange Commission is the regulatory authority
in Pakistan which vigilantly monitors and control the market.
• To develop a fair, efficient and transparent regulatory framework,
based on international legal standards and best practices for the
protection of investors and mitigation of systemic risk.
• On site inspections
• Analyzes compliance of brokers and agent
• Brokers to provide net capital balance and other material informations
• Companies registered with SECP requires to full fill post incorporation
statutory and legal requirements
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7. No Restriction or Penalties on Repatriation of Capital and
Income for International Investors
• Most liberal Foreign Investment Regulations in the world.
• Government undertook a comprehensive program of radical economic reforms
including liberalization, privatization, and deregulation to bring the economy
into a fully market-oriented system for capturing the potential of the private
sector in all areas of economic activity.
• Foreigners are at with the domestic investors.
• Foreigners at any time repatriate the currency from which the investment was
originated including profits.
• Creditors of an industrial undertaking may repatriate foreign currency loans and
interest thereon
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8. Fair and non-prejudicial Treatment of Minority Shareholders
• minority shareholders are sufficiently protected under various provisions of the Companies
Ordinance, 1984 and Listing Regulations
• shareholders holding 20% of the issued share capital may file complain with the registrar of
companies about the conduct of the company which is in violation of the memorandum of the
company, the registrar may make an application to the Court by petition for an order of winding up of
the company.
• shareholders / acquirer, holding at least 12.5% voting shares, may request SECP for holding fresh
election of directors.
• application of members holding not less than 20% of the voting power in the company the Court may
within thirty days of the date of election, declare election of all directors or any one or more of them
invalid if it is satisfied that there has been material irregularity in the holding of the elections and
matters incidental or relating thereto”.
• Under Code of Corporate Governance, representation of minority interest on the Board of Directors is
encouraged. Minority shareholders as a class are facilitated to contest election of directors by proxy.
• At the time of listing of new companies, Exchange ensure sufficiency of public interest and also the
minimum requirement of listing / public offer of shares is fulfilled, which at present ranges in between
25% to 50% of the paid up capital of the companies
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9. No Restriction on foreign ownership
• No restrictions of acquiring 100% ownership of a company by foreigners. All
sectors are open to FDI with equal treatment of local and foreign investors.
•100% foreign equity allowed, and royalties, franchise fees, capital, profits,
dividends etc all fully re-patriable.
•World Bank in its report “Doing Business 2007” has ranked Pakistan at 74th, for
ease of doing business
• Pakistan has had considerable success in attracting FDI in FY06, a large part of
the FY06 FDI comprised receipts from privatization of public sector assets.
•The Government of Pakistan, in the cases of dis-investments and privatization of
govt. owned companies, dis-invested the shares with change of management in
favour of foreign investors.

10. Free and well-developed Equity Market
• Equity market is well developed and totally free & restriction-less for all investor
local as well as foreigners.
• having fully automated trading system with separated Central Depository and
clearing company
• KSE is FIX Compliant.
• state-of-the-art computerized trading system known as Karachi Automated
Trading System (KATS).
• Internet based routed trading facility
• each and every order/ trade is duly logged & recorded, with pre-trade client-
wise margins verification system effective at order level.
• Unique Global Identification Number (UIN) has also been introduced
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11. Free and well-developed Foreign Exchange market
•Banks and leading Brokerage Houses are active players in the “inter-bank foreign
exchange market
•provide comprehensive foreign exchange products and services through their
network.
Foreign exchange business in Pakistan is governed / regulated under Foreign
Exchange Regulations.
Exchange Policy Department (EPD), of the State Bank of Pakistan is responsible
for overall stability of the foreign exchange market
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12. Custody and Settlement
•Settlement – Rare incidence of failed trades
Custody – sufficient competition to ensure high quality custodian
services
•Central Depository Company of Pakistan provides complete and secure system to
its clients, ensures smooth and risk free settlement of security transactions in an
efficient and cost-effective manner comparable to best international practices.
•Experts of the renowned international firm Price Waterhouse conducted the study,
sponsored by the United States Agency for International Development (USAID).
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13. Securities Lending is permitted
Leverage product Securities lending and borrowing is available through the
clearing company .
Settlement – Free delivery
Custody – Omnibus account facilities available to international investors
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14. Dealing Landscape
• Brokerage – Sufficient competition - ensure high quality broker services
• Exchange Members / brokerage houses offer highly competitive
services to investors/clients world wide.
• Many providing a comprehensive range of investor focused services,
including equity brokerage, economic and securities research,
investment banking and financial advisory services.
• Good corporate governance, professionalism, and comprehensive
code of ethics are overseen in many firms by an independent
compliance manager
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15. Transaction costs – reasonable and competitive
• Brokers’ commissions on transactions are freely negotiable between
the brokers and clients.
• Transaction costs have been significantly lowered after on-line trading
was introduced. Due to the price competition, brokerage commissions
for on-line trading continued to be lowered.
• Stamp duty: There is no stamp duty for transfer settled through the
Central Depository System, however, there is a one-time stamp duty at
the rate of One Paisa per share at the time of deposit of securities in
the CDS.
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16. Short sales permitted
• Short selling is permitted under the regulations for short selling under
ready market, 2002, of the Karachi Stock Exchange (guarantee)
Limited
Off exchange transaction permitted
• Off- Market transactions are permitted. However, same-day reporting
to the exchange of these off-market trades is mandatory
Transparency – market depth information/ visibility and
timely trade reporting
• Market depth information is available to all KATS terminal, showing the
list of best bids and offers and full depth of the order book without
disclosing the market participants.
• KATS provide three distinct windows to gauge the depth of the order
book, namely Market by Price (MBP), Market by Order (MBO) and
Market by Symbol (MBS). 16

17. Derivatives
Developed Derivative market
• Single Stock Futures Contracts have been traded successfully in KSE
since 2001.
• Single stock Cash-settled Contracts are also introduced.
• Stock Index future contract also introduced from November 5 2007.
• Trade able sector indices
• Options on index and single stock will be introduced shortly.
• ETF
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18. Dispute Resolution
• Dispute resolution mechanism is provided by the Exchange through
well defined Arbitration Process enshrined in the General Regulations
of the Exchange. Any disputes between Members between any of the
Members and their constituents/clients, or between any of the
Members and their authorized agents or between authorized agent(s)
and their constituents/clients in connection with the trade or transaction
at the Exchange and is not otherwise settled amicably, are to be
referred to arbitration under General Regulations of the Exchange
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19. 2008-2009: Recapping Performance
In 2008 KSE, in line with global markets, saw a significant decline in returns as world markets crashed.
Countr Index January – December 2008 Return
Japan Nikkei 225 -42.1%
United Kingdom FTSE 100 -52.4%
India Sensex 30 -52.4%
Pakistan KSE 100 -58.3%
China Shanghai -65.4%
Showcasing its resilience KSE rebounded in 2009 in line with global and regional markets
Country Index January – December 2009 Return
India Sensex 30 81.03%
China Shanghai 79.98%
Pakistan KSE 100 60.05%
United Kingdom FTSE 100 21.78%
Japan Nikkei 225 19.04%
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20. KSE in 2011E vis-à-vis other markets
Country Index January – Dec 2011
Thailand Set -0.72%
United Kingdom FTSE 100 -5.55%
Pakistan KSE 100 -5.61%
Japan Nikkei 225 -17.34%
China Shanghai -21.68%
India Sensex 30 -24.64%
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21. 2010: Performance
2010 Regional Market Comparison
Country Index January – Dec 2010 Return
Tokyo Nikkei 40.6%
Pakistan KSE 100 28.08%
India Sensex 30 17.43%
United Kingdom FTSE 100 9.79%
Japan Nikkei 225 -3.01%
China Shanghai -14.31%
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22. 2012: Performance
2012 Regional Market Comparison
Country Index January – June 08, 2012 Return
KSE 100 INDEX 19.48%
BANGKOK SET 9.93%
US NASDAQ COMP. 8.67%
BOMBAY BSE 30 8.18%
CHINA SHANGHAI COMP. 3.73%
SINGAPORE STRAIT TIMES 3.46%
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23. Strong Affiliates to develop the Capital Markets
In order to continue to strengthen the capital markets in Pakistan, over the
years, the KSE has undertaken significant strategic investments with key
Capital market institutions
KSE
Shareholding
Central Depository Pakistan’s leading Depository 39.81%
Company and Custodian of Shares
National Clearing Pakistan’s centralized Clearing 47.06%
Company and Settlement company
National Commodity Pakistan’s first electronic 27.12%
Exchange commodity exchange
JCR-VIS Credit JCR-VIS Pakistan’s premier credit rating 12.50%
Rating Company agency
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24. Agreements with leading Regional Exchanges
Cooperation between exchanges is essential in order to help resolve
global liquidity and risk management issues
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25. International Relations
• In order to have a co-ordinated approach to
resolve global liquidity and risk management
issues and engage in knowledge transfer
programs, the KSE is also a part of the
following international organizations and
associations:
– World Federation of Exchanges
– South Asian Federation of Exchanges
– Federation of Euro-Asian Exchanges
– International Organization of Securities
Commissions
KSE also held Chairmanship of the South Asian
Federation of Exchanges for 2009-10
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26. The Exchange’s ongoing commitment to you
We are committed to supporting you every step of the way and
for this purpose, we have a team of experienced individuals to
assist you with any queries that you may have.
Visit our website at www.kse.com.pk
Contact us: +9221-111-001-122
Email Address: info@kse.com.pk
Mailing Address:
The Karachi Stock Exchange (Guarantee) Limited,
Stock Exchange Building,
Stock Exchange Road,
Karachi