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The Role of Institutional Investors in Expanding the Market. Institutional Investors Roundtable Conference. Presented by: Mr . Aftab Ahmed Ch. Managing Director/CEO. Friday, August 23r d , 2013. Role of Institutional Investors.
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The Role of Institutional Investors in Expanding the Market Institutional Investors Roundtable Conference Presented by: Mr. Aftab Ahmed Ch. Managing Director/CEO Friday, August 23rd,2013
Role of Institutional Investors • Institutions can help ensure that capital markets function as engines for economic growth • Institutional investors: • Improve participation and price discovery in primary market • Promote management accountability • Provide trading markets with liquidity — the lifeblood of our capital markets • Provide stability to market in turbulent times • Sophisticated requirements help in development of trading products at exchanges
Infleunce of Institutional Investors Commissioner Luis A. Aguilar, U.S. Securities and Exchange Commission April 19, 2013-Georgia State University The proportion of U.S. public equities managed by institutions has risen steadily over the past six decades, from about 7 or 8% of market capitalization in 1950, to about 67 % in 2010 The growth in the proportion of assets managed by institutional investors has been accompanied by a dramatic growth in the market capitalization of U.S. listed companies. Public companies with the highest levels of institutional investment significantly outperformed those with the lowest levels.
Lahore Stock Exchange The purpose for the establishment of LSE was to set up a trading venue in Punjab, which had the largest middle class and the largest number of medium industries and business houses in the country.
LSE Outreach • Trading Floor in Faisalabad • 80 brokers’ branches in 16 cities • More than 20% of Registered UINs predominantly retail investors
Trading Products • Regular Market • Automated trading of Equities & Funds • Debt Securities Trading • Automated trading of Debt Securities • Futures • 30-days Deliverable Future Contracts • 90-days Cash Settled Future Contracts • 7-days Cash Settled Future Contracts • Short Selling through SLB • Margin Financing • Margin Trading
Trading Volumes B2B Affirmed LSE originated volume +9% +9% The squared-up day trades and non-affirmed settlement trades may stand at twice of this amount according to a safe estimate
Marketplace Revitalization-Listing • Corporate advisory services for non-listed companies • Stage 1: Solicitation of interest/time for briefing via letters/email/phone • Stage 2: Conduct of briefing/presentation at the premises of the company/enterprise concerned • Stage 3: Signing of the Non Disclosure Agreement, if interested for sharing the latest financial data with LSE's corporate finance team • Stage 4: Conducting Advanced Briefing for Highlighting the Tentative Enterprise Valuation and Industry Benchmarking/Comparison • Stage 5: Technical Briefing/Knowledge Sharing about the Pathways and Paperwork for Listing • Stage 6: Assistance, if any, in the search for the financial advisors and other practical matters about IPO preparedness
Marketplace Revitalization-Listing Listing of such companies which are listed at KSE Large, Medium & Small Cap Companies Listing Promotion Annual IPO Summits Investors Relations Programs for Companies PUCAR Corporate Data Research Portal/XBRL reporting Investor Relations Program
Marketplace Revitalization-Investors Education Campus Outreach Program
Marketplace Revitalization-Investors Education & Awareness Corporate Briefing Programs Weekly Investors Briefing Sessions & Monthly Investors Roundtables Investors' Service Center Seminars/Conferences/Road Shows under SAFE-Financial Literacy Initiative
Marketplace Revitalization Brokers Capacity Building Brokers Continuous Professional Development Preparation of Guide Book on Brokerage Business Business Process Efficiencies through sharing of LSE's infrastructure Corporate Communication, Media Relations & Public Affairs
Working at LSE Possible Benefits to Institutional Investors
Major Benefits of working with LSE • Becoming Client of Brokers • Access to joint LSE-ISE liquidity pool • Robust regulatory regime for your protection • Ability to participate as financier • Enjoying general facilities & added-services offered by the Exchange • Becoming a TREC Holder • Brokerage Operations • Incomes through participation & preferential treatment in projects such as LNP, Algo Trading, Spot Commodity, infrastructure projects • Participation as financier in MT market (higher margins)
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