Investor Information

Following plan details and taxes are available for both investing people and enlist companies of Karachi stock exchange.

Local Investing information of KSE

  • Capital gains calculated on sale of enlist companies of Karachi stock exchange are relieved from income tax until the year 2010. This exemption is presented from 1974.
  • Withholding tax of dividend is subjected up to 10% in KSE.
  • Dividend income use to be taxed as a separate portion of the net income on the shoulders of each and every shareholder.
  • Any incoming amount which has been derived from TFC’s is subjected to the income tax from the income year of 2001 - 2002.

General investing information

  • Listed companies of KSE are used to tax at 35%.
  • Provident funds can now be invested in the securities which are approved and listed at Karachi stock exchange. They are also given an independency to invest in open end mutual funds which are established under the AMC rules in 1996.
  • Turnover tax is not paid by companies on the turnover representing transactions of their company in securities enlist in Karachi stock exchanges.

Legal Framework

  • Provisions of company ordinance will regulate the securities market and the corporate sector in Karachi stock exchange.
  • Rules of securities and exchange ordinance 1969 are framed in 1971.
  • The Securities & Exchange Commission Act 1999.
  • There are also some Federal legislations presented relating to specific sections such as;
    1. Monopolies and Restrictive Trade Practices Ordinance, 1970.
    2. Investment Companies and Investment Advisors Rules 1971.
    3. Modaraba Companies and Modaraba (Ordinance, 1980.
    4. Companies Rules 1996
    5. Leasing Companies Rules 1996
    6. Asset Management Companies Rules 1996.
    7. Insurance Companies Ordinance 2000.
    8. Guidelines for insiders trading.
  • In addition to above, the listed companies are also subject to the Rules and Regulations of the KSE.