How to Invest

Exposure Limits:
The KSE has an effective var based Risk Management System under the regulation governing Risk Management of Exchange. As a part of risk management, KSE has devised circuit breakers as under.
 

T+2:
There shall be a circuit breaker in case of price fluctuation 5% or Rs. 1.00, whichever is higher, from the closing price of the previous day. Accordingly trading will be restricted within upper and lower limits of 5% or Re. 1.00 whichever is higher from last closing price.:

Futures Contract:
There shall be a circuit breaker in case of price fluctuation 5% or Rs. 1.00, whichever is higher, from the closing price of the previous day. No trade in the Futures Contract market will be allowed beyond the above price fluctuation In order to strengthen the Risk Management, the amount of Net Capital Balance has been enhanced to Rs.2.5 million under the Capital Adequacy Ratio the members are allowed to trade up to 25 times of the Net Capital balance.

Clearing House Protection Fund:
In order to ensure smooth settlement, the KSE has established a Clearing House Protection Fund. In case of default of a member, shortfall, if any, is fed through this fund up to a certain limit as approved by the Board from time to time. The contribution to the Fund is made by the members of the Exchange.

Investors Protection Fund:
An Investors Protection Fund has also been established to protect small investors from the consequences of a member's default. The fund is operated under a set of Regulations.

Market Surveillance:
The advent of the Automated Trading System has enhanced the market surveillance capability of KSE to devise a market control system. An independent Market Control and Surveillance department has been established to monitor price fluctuation and trading patterns to ensure compliance with regulations and detection of speculative activities.

Minority Shareholder's Interest:
The Exchange has played a proactive role in safeguarding small shareholders' interest and has strengthened its monitoring and enforcement capability to ensure corporate governance. During past couple of years a number of cases have been referred to the SECP in this regard.

Issue Capital

Listing Requirements & Procedures:

Issue of capital is mainly governed by the Companies Ordinance 1984, Companies (Issue of Capital) Rules, 1996 and Listing Regulations, Regulations Governing Over the Counter (OTC) Market and criteria for listing framed there under.
A. The main requirements of listing on the ready market.

1. Minimum paid up capital of Rs.200 million.
2. Minimum public offer as required under the Listing Regulations and the Companies (Issue of Capital) Rules, 1996.
3. Public offer of equity has to be subscribed by at least 500 applicants.
4. The offering document has to be cleared by the KSE before it is submitted to the Securities Exchange Commission of Pakistan for approval.

   B. The main requirements of listing on OTC market

1. Minimum paid up capital of Rs.10 million.
2. Minimum public offer Rs.5 million or 25% of the capital whichever is higher.
3. Break-up value of the ordinary shares shall not be less than its face value at the time of listing.
4. The offering document has to be cleared by the KSE before it is submitted to the Securities Exchange Commission of Pakistan for approval.

   C. Time frame for Listing

The listing application completed in every respect along with offering document is not required more than 2 weeks for clearance of the Exchange.

For further details please see the relevant Rules & Regulations, requirements/criteria for listing as well as the documents / information required for listing of securities, which have been placed separately on the website.