In MTS (Margin Trading System), an investor can buy MTS eligible securities having a part percentage of funds available of the total value of MTS eligible securities bought. An investor may buy a number of MTS eligible securities while having only a fixed percentage of funds available. The remaining amount is financed or leveraged by the Brokerage firm. The percentage of funds required for MTS is defined by the Brokerage firm which shall not be less than 15% of the total value of MTS eligible securities purchased or VAR (Value at Risk – A percentage number signifying the decline in the value of an asset class in a particular period of time). A mark-up rate of not more than Kibor+8% is charged against the leveraged securities held under MTS. Margin Trading Contracts are settled in T+2 days.

Equity Market, usually known as Stock Market, is the marketplace where general public can invest, buy and sell shares of the companies listed. Currently, there are more than 500 companies listed on Pakistan Stock Exchange with a Market Capitalisation of more than 7 Tn. These companies are distributed amongst more than 35 sectors or groups of industries. Shares or stocks are also known as equities.

The Equity segment has following sub-markets wherein securities can be traded


Regular/ Ready market

In this market segment, stocks of all companies listed are traded. Transactions are settled in two days (T+2).

Small & medium enterprise market

Here shares of companies with post-issue paid-up capital between 25 Mn and 200 Mn PKR are traded. Target investors for this segment include Qualified Institutional Buyers (QIBs) and High Net Worth Individuals (HNWI).

Odd lot market

In this market segment, investors can trade in securities in lots which are less than normal/ regular lots (500 shares). The minimum number of shares that can be traded is 1. Settlement takes place in T+2 days.

Square up market

In this market segment, if a Clearing Member (CM) fails to deliver sold securities, then the failed deliveries are squared up in the Square-up Market.

REIT (Real Estate Investment Trust)

REIT is a fund based trust that owns income-producing real estate, buys real estate, develops, manage/ operates and sells real estate assets. REITs are modelled after mutual funds where all taxable income is paid out as dividends to shareholders.

Negotiated deal market

This is not part of the mainstream market transactions. Here negotiated deals are conducted outside the Exchange Trading Systems and are reported through the interface provided by the Exchange. These deals may also be called Off Market Transactions. These transactions are conducted between brokers.