Details

Technical Note

The Karachi Stock Exchange

Zehra Mahoon, Syed Zahoor Hasan

INDUSTRY : Financial Services

AREA : Management Information Systems

ORGANIZATION : Karachi Stock Exchange - KSE/ Sitara Chemicals Ltd.

LENGTH : 36

LUMS No : 18-262-94-2

PUBLICATION YEAR : 1994

KEYWORDS:

KSE,Karachi Stock Exchange,Management Information Systems,Sitara Chemicals Ltd,Financial Services

DESCRIPTION:

The Karachi Stock Exchange (KSE) was established in 1947 with an initial listing of 5 companies, and a membership of 90 (although there were only a dozen active brokers). It was converted to a Guarantee Company in 1949, where members were responsible for the running of the organization. The liability of the members was limited by the amount the members undertook to contribute to the assets of the company in the event of its winding up. The president and managing committee were elected by the members every year. The KSE was a closed exchange in which only members were authorized to deal on the trading floor. All other parties would have to place their orders through one of the members. In 1992, there were 200 members of which 133 were active and used their membership for trading. No further membership was being offered. Each active member of the KSE was entitled to have up to eight authorized agents or floor brokers.1 Only floor brokers and members themselves were allowed on to the trading floor and only they could enter into the bidding process. In addition, each active member was allowed up to three runners to maintain contact between his office and the trading floor.

LEARNING OBJECTIVES:

N/A

SUBJECTS COVERED:

Management Information Systems