Selection of top companies in Karachi stock exchange is made while considering some important reputing details of the registered companies with KSE. A specific criterion of KSE is described below.
- Minimum distribution of the company in Karachi stock exchange must be equal to or around 40% which should include cash dividend of about 15% for their share holders of Karachi stock exchange.
- If the company has made its joining in the CDS after accepting itself as an eligible securities form the central depository company of Pakistan and it must be reported at KSE on time.
- The company would not be reported as violating in KSE under any listing of the regulation authority
- Those companies who are qualifying the above mentioned details in Karachi stock exchange then they will be reviewed on the basis of following criteria for determining their position.
- Return on Equity calculation is done considered as 30% of the report.
- Distributions of the profit of the running year will be considered only which is taken as 40%.
- Free float of the hold shares will be calculated on outstanding share only in Karachi stock exchange which is about 5%.
- Social responsibilities are also considered in positioning which is about 5%. This 5 percent is distributed as 2.5% of monitory donations and the remaining 2.5% is for the other social distribution which is made confirmed by the company.
- And the remaining 20% is distributed as announcement of half yearly result contain 5%, board meeting hold annually also credited for 5%, AGM within three months is also containing 5 % and the remaining 5% are for the early dispatch of dividend.