Pakistan Stock Exchange

Pakistan Stock Exchange (PSX) as by its name is the stock market of the Islamic Republic of Pakistan. The trading is done in the provincial capital of Sindh, Karachi. Pakistan Stock exchange became a reality on the 11^th January 2016. It is the merger of three stock markets of the country. Lahore Stock Exchange, Karachi Stock Exchange and Islamabad Stock Exchange all together make Pakistan Stock Exchange.

     PSX is the part of MSCI and it is included in the Top category of Emerging Markets Index. This Emerging market has won the confidence of people across the world making it “Asian Tiger”. Karachi Stock Exchange (KSE), Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE) were established in 1947, 1970 and 1992 respectively. PSX is in the top Three most best performing market in the world according to many renowned sources and market analysts. This Market has so many diverse companies representing all kind of businesses, corporation, public sectors and services sector.

     Every Sector contributes its part of making the Indexes go in positive or negative position. Some sector might show a negative impact on the index where as many would be going positive so the point at which there are more positive points added, markets becomes positive and vice versa. Pakistan Stock Market is one of the most attractive market in the world because it shows a return of 26% on its investment. The market index has doubled ever since there was a transaction of powers among political parties from PPP to current parliament ruling party PMLN. Despite 126 days drop down on market because of political dilemma in December 2014.

Let us suppose that why any would want to invest here and if his/her money is safe or not. So now we must have a look on the watchdogs or regulators of these markets and your investment. As safe investment is the best business anyone would want, consider yourself well protected in the Pakistan stock market by the laws and regulations given by the Pakistani government. First of all your broker and any company you invest in is registered with SECP (security exchange commission of Pakistan), secondly there are committees that have a very through look in company policy and regulations and any company or corporate is penalized if they violate any regulation whatsoever. This code of conduct is often called the corporate compliance laws and regulations. Moreover your investment and dealings with your broker is also regulated by regulatory body such as CDC and NCCPL. CDC or central depository company is responsible for registering all the shares with the shareholder and directly to your broker too. However NCCPL (National Clearing Company of Pakistan LTD) monitors all your transactions done in your account and is also responsible to generate an all year income/profit/loss summary on your demand. Pakistan stock exchange also plays a vital role in the regulation of any law whatsoever complied by shareholder or the company itself.

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