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This is to inform that Graded Discussion Board (GDB) No. 02 will be opened on February 09, 2016 for discussion and last date for posting your discussion will be February 11, 2016.

Over the past five years Pakistan stock market continues to perform better in local currency terms (compare the given table). In year 2015, net foreign portfolio investment witnessed an outflow of US317millionversusnetinflowofUS383 million. All this shows the fundamental strength of our locally listed corporate sector as represented by KSE100 index. Even though the stock markets are performing better the Government has taken the decision of integration of all stock exchanges into one stock exchange.

As the student of finance you are required to discuss how this decision can prove to be landmark in the history of stock exchange or can deteriorate the whole growth opportunities of Pakistan stock markets. You are required to highlight any four such points.

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Over the past five years Pakistan stock market continues to perform better in local currency terms (compare the given table). In year 2015, net foreign portfolio investment witnessed an outflow of US 317 million versus net inflow of US 383 million. All this shows the fundamental strength of our locally listed corporate sector as represented by KSE 100 index.

Key Point
Even though the stock markets are performing better the Government has taken the decision of integration of all stock exchanges into one stock exchange.

As the student of finance you are required to discuss how this decision can prove to be landmark in the history of stock exchange or can deteriorate the whole growth opportunities of Pakistan stock markets. You are required to highlight any four such



yr solution nhi ha kia??????????

Representatives of the Karachi Stock Exchange (KSE), Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE) will sign a memorandum of understanding (MoU) on Thursday, which will lead to the integration of the three stock exchanges into the Pakistan Stock Exchange (PSE), a spokesman for the apex regulator of the capital markets said in a statement. The decision was taken in a joint meeting of the demutualisation committees of the three stock exchanges at the Securities and Exchange Commission of Pakistan (SECP), he said. “There was a general agreement that in order to achieve the government’s vision of a fair, efficient and transparent market with one national stock exchange conforming to international standards, integration of the local bourses was to be pursued.” Although there was only a passing reference to a “strong case for attracting strategic partnerships” in the official statement, analysts believe the real reason for merging the two smaller exchanges with the main bourse in Karachi is to complete the process of demutualisation. Demutualisation – initiated through the Stock Exchanges (Corporatisation, Demutualisation and Integration) Act 2012 – ensures the segregation of the majority ownership of a stock exchange from the right to trade on it. The piece of legislation gave each of the three stock exchanges a timeline to sell up to 40% of its total issued shares to a “strategic investor,” which could be a foreign stock exchange or depository company.

bilal bhai ye kya likha ha ap ny??? solution???

kiya hua sbko
kisi aik ko to high light krdo

How this decision can prove to be landmark in the history of stock exchange.

  1. With this merger the financial uplift should be the first achieved goal,
  2. benefits of such a considerable event should be the foreign direct investment in Pakistan
  3. improvement in the opulence of the country.
  4. competitive and emerging capital,
  5. national and international financial markets of Pakistan should be strong.
  6. This merger gives away a positive vibe on the subject of the financial system of Pakistan.
  7. The downfall in the economy needs will be covered up.

        PSX is a means of hope for the betterment of the financial system of                     Pakistan.

can deteriorate the whole growth opportunities of Pakistan stock markets.

[…] and disadvantages....one should follow those which suites him best.. merger of KSE,LSE & ISE Merger of LSE and ISE into KSE on the cards | Pakistan Today In order to mitigate the risk of broker default, one should transfer the share soon as they […

hmmmmm

thanks Mr.asif

  1. One, the monetary cost of listing should reduce.
  2. listed companies have to pay listing fees to each exchange.
  3. only one fee would have to be paid.
  4. cost of time and effort spent in compliance with listing regulations should reduce.
  5. Companies that are listed at more than one exchange have to comply with the regulations of each exchange.
  6. each corporate announcement has to be made to each exchange separately.
  7. Similarly, at the time of listing, a lot of paper-work for each exchange has to be done independently.
  8. When there would be only one exchange, compliance would be simplified.
  9. The number and quality of products and services for the issuers should improve. 
  10. All services, from listing, trading, custody, and settlement shall be provided by one exchange
  11. subsidiaries and exchange would have adequate economic and human resources to improve its services to issuers.
  12. it could facilitate development of market for debt securities making it easier for issuers to raise capital through debt instruments.
  13. it could fasten the pace of issuing right shares.
  14. There would also be strong incentive for the exchange to act as a highly efficient share-registrar through the CDC for all listed companies.
  15. Trading would take place at only one exchange, rather than three exchanges, there would be a single price for a security at any one point in time.
  16. Trading volumes would increase because all the trading would happen at one exchange rather than three exchanges.

asif bhai ye wo points han jo hamay required han???

Since exchanges earn most of their revenues from trading volumes, a for-profit exchange shall have a strong incentive to invest in having brokers and trading terminals in all those parts of the country which do not have direct access to the market.

Improved liquidity and price discovery and a broader investor base would make it easier for new companies to raise longer term risk-capital from the capital market and reduce their reliance on conventional lenders like banks. Companies would also be able to rely more on their stock prices to judge their performance.

Five, the exchange should be better able to understand the point of view of listed companies. The exchange would be both a listed company and the front line regulator of the listed companies.

It would be under constant pressure to be a role model for others. This would make it more realistic in devising and implementing regulations for listed companies, such as the Code of Corporate Governance.

Six, due to its greater economic and strategic significance, the exchange shall be better able to lobby with the Government for the common issues facing listed companies. For instance, the exchange may effectively seek concessions for the listed companies, such as lower tax rates on corporate income and dividends.

There would be a strong commercial incentive for the exchange to seek such concessions because the more the listed companies, the greater would be the listing revenue and trading fees for the exchange.

Seven, listing on a high profile and closely watched exchange should carry an element of prestige and help the listed companies in their overall marketing efforts. By following better governance practices, such as a high level of on-going disclosure, listed companies should be able to get better terms from lenders and other business partners than similar unlisted companies.

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