|
|
|
| Shares Trading and Investment |
|
IGI Securities Limited holds corporate memberships at both the Karachi and Lahore Stock Exchanges and provides brokerage and custodial services to its individual, institutional, and foreign clients. Professional Account Executives at IGI Securities are dedicated to service their client’s investment and trading needs. |
|
Settlement of shares is effected through a centralized clearing-house using the Central Depository Company of Pakistan Limited (CDC) to lodge the shares.
Since the introduction of CDC, most shares have been converted into electronic form and are transacted accordingly. Clients have the option to open an independent custodial account with the CDC or a sub-account with the CDC through IGI Securities Limited. |
| |
| IGI Commodities |
|
The Company offers its customers the opportunity to trade in commodities at the online commodities exchange of Pakistan - National Commodity Exchange Limited. |
|
| IGI Commodities is the commodities brokerage service of IGI Finex Securities that offers customers the opportunity to trade in commodities at the online commodity exchange of Pakistan – National Commodity Exchange Limited (NCEL). IGI Commodities is registered with the National Commodity Exchange Limited to offer top of the line trading facilities for market participants interested to trade in futures contracts offered by NCEL.
|
| |
| Foreign Exchange |
|
| IGI Securities Limited is also an authorized dealer for the Foreign Exchange market. |
|
| In this market, brokerage firms execute foreign exchange transactions on behalf of the commercial banks and other institutions. The local exchange market includes spot, forward and swaps transactions. The State Bank of Pakistan has relaxed restrictions on Nostro balances for banks and, consequently, the swap market has become an active liquidity management tool for banks. |
| |
| Money Market |
|
The Money Market consists of the debt securities issued by the government and the corporate sector. |
|
Government-issued 3, 6 and 12-month Treasury Bills and the 3, 5, 10, 15, 20 and 30 - year Pakistan Investment Bonds (PIB) form the backbone of the debt market.
IGI Securities trades in these instruments, as well as in related products such as repos and reverse-repos. These account for a major chunk of all money market activities, especially the local interbank market. These instruments are issued by the State Bank through an auction process to the Primary Dealers, who in turn make it available for trading in the secondary market. |
| |
| Settlement Procedures |
|
| Trading is divided into four distinct counters, each having its settlement procedure. |
|
| |
T + 2 or Regular Contracts
Transactions are settled on the second working day following the trade day through the centralized clearing-house. The clearing-house advises the financial obligations of each member/firm based on the transactions in various markets for the notified clearing period. It thereon issues instructions for payment and delivery of shares from and to the various members of the clearing house. |
| |
T + 1 or Spot Contracts
Listed companies, announcing the closure of their share transfer books to facilitate corporate actions, are traded as Spot five days before their closure date. Daily settlement of funds and shares is effected through the clearing-house. |
| |
Futures Contracts
Trading in Futures Contracts started in July 2001 and currently a selected number of companies are available for trading in this counter. The contract is fixed for one month and is settled at the end of the period through the clearing. |
| |
Provisionally Listed Companies Contracts
Shares of selected companies are traded here from the date of the publication of their offering document to the date they are listed at the exchange and traded as T+3. Daily clearing takes place and is monitored by the KSE. Upon listing, the outstanding business is transferred and settled through the T+3 trading system.
Trading in the counter takes place in companies
which
are making their Initial Public Offering (IPO) or offer for sale.
Based on the prescribed rules, provisional trading continues till the company is formally listed on the Karachi Stock Exchange. |
| |
Central Depository Company of Pakistan Limited
The settlement and custody of shares takes place through the Central Depository Company of Pakistan Limited (CDC)
CDC was established by the three stock exchanges of the country in association with some of the leading financial institutions.
CDC operates an on-line, real-time book entry and settlement of securities for the three exchanges. Physical deliveries have been replaced by electronic shares by virtue of the Central Depository System (CDS). Currently almost all trades are settled through this system.
The following types of accounts can be opened:
Participant Account – for member/firms and large institutional investors.
Investor Account – for individual, retail and corporate investors.
Sub Account – for individual and corporate investors through the member/firm. |
| |
|
| |
|
|
