Glossary · Regulation & Institutions
Pakistan Stock Exchange
The sole stock exchange in Pakistan, formed in 2016 through the merger of the Karachi, Lahore, and Islamabad stock exchanges. Headquartered in Karachi, the PSX lists over 500 companies across multiple sectors.
01—What is Pakistan Stock Exchange?
The definition — and what it means in practice.
Pakistan Stock Exchange (PSX) is Pakistan’s sole stock exchange, formed in 2016 through the merger of the Karachi, Lahore, and Islamabad stock exchanges. Headquartered in Karachi, it provides a regulated marketplace where investors buy and sell listed securities. The PSX lists over 500 companies across multiple sectors, and prices are discovered through orders submitted by licensed brokers into the exchange’s trading system.
For investors, the PSX is the main venue for building and managing a portfolio of listed shares and tracking market performance through indices. It is also where corporate actions and disclosures affect your holdings, such as dividends, bonus shares, and book closures. Understanding how the exchange ecosystem works in practice, including trading sessions, settlement and basic market safeguards, helps you interpret price moves, liquidity, and transaction timelines more realistically.
PSX is Pakistan’s only stock market: if you buy 100 shares of a listed company, your order is executed on PSX and the shares settle into your CDC account.
- PSX is Pakistan’s only stock exchange, created in 2016 by merging three regional exchanges.
- It is regulated by the SECP, with clearing through NCCPL and electronic share holding at CDC.
- Investors access PSX via brokers; brokers require a TREC licence and clients need a UIN.
- Most equities have daily price limits (circuit breakers) around the previous close (LDCP).
- PSX indices (such as KSE-100 and KMI-30) summarise market or segment performance.
02—How pakistan stock exchange works on the PSX
The Pakistan-specific rules, conventions, and numbers.
On the PSX, trades are regulated by the Securities and Exchange Commission of Pakistan (SECP), clear through the National Clearing Company of Pakistan Limited (NCCPL), and shares are held electronically at the Central Depository Company (CDC). Settlement is T+1 (one business day). To trade, an investor needs a Unique Investor Number (UIN) and places orders through a broker that holds a Trading Right Entitlement Certificate (TREC) licence.
Trading runs Monday–Friday and includes a pre-open session followed by continuous trading roughly 09:30–15:30 Pakistan Standard Time. A standard board lot is typically 100 shares, so many quotes and order sizes are naturally discussed in lots. For most equities, daily price limits apply: ±10% or Re 1 around the last day close price (LDCP), whichever is higher, which can affect execution and liquidity on fast-moving days.
PSX-listed companies operate under the Companies Act 2017 and must publish audited annual accounts and hold Annual General Meetings (AGMs). Investors commonly follow PSX indices such as the KSE-100 (a free-float benchmark with a semi-annual review), KSE-30, and Shariah benchmarks like the KMI-30 (based on AAOIFI screens). Dividends are often quoted as a percentage of face value, and many listed shares have a Rs 10 face value.
03—Common misconceptions
Where investors most often get this wrong.
PSX and the KSE-100 index are the same thing.
PSX is the exchange (the marketplace). KSE-100 is one index that tracks a selected group of PSX-listed companies using a defined methodology.
If I buy shares on PSX, I get a paper share certificate.
PSX trades are held electronically through the Central Depository Company (CDC). Your ownership is reflected in your CDC account rather than a physical certificate.
A 100% dividend means my investment doubles.
On the PSX, dividends are often declared as a percentage of face value. If face value is Rs 10, a 100% dividend means Rs 10 per share (before withholding tax).
04—Using pakistan stock exchange on BSL
Where this term shows up across the platform — with live data.
- Browse and compare listed shares on the Stocks page.
- Filter PSX companies by fundamentals and liquidity using the Stock Screener.
- Track index performance via KSE-100.
- Check upcoming corporate action dates on Ex-Dates.
05—Frequently asked questions
What investors ask about pakistan stock exchange on the PSX.
Frequently Asked Questions
The Pakistan Stock Exchange (PSX) is Pakistan’s sole stock exchange. It was formed in 2016 by merging the Karachi, Lahore, and Islamabad stock exchanges and is headquartered in Karachi. It provides the marketplace where listed securities are traded through brokers under regulation.
The PSX is regulated by the Securities and Exchange Commission of Pakistan (SECP). Trades clear through the National Clearing Company of Pakistan Limited (NCCPL), and shares are held electronically at the Central Depository Company (CDC). Settlement is T+1, meaning completion occurs one business day after the trade.
Yes. Every investor needs a Unique Investor Number (UIN) to trade on the PSX. You typically receive it through your broker as part of account setup and market access requirements.
For most equities on the PSX, daily price limits apply around the last day close price (LDCP). The limit is typically ±10% or Re 1, whichever is higher. These limits can restrict how far a price can move in a single day and may affect order execution.
On the PSX, dividends are commonly declared as a percentage of a share’s face value. Many listed shares have a Rs 10 face value, so a “100% dividend” usually means Rs 10 per share (before withholding tax). Withholding tax on cash dividends is 15% for filers and 30% for non-filers.
Commonly followed PSX indices include the KSE-100 (a free-float benchmark with a semi-annual review), KSE-30 (liquid large caps), and Shariah benchmarks such as the KMI-30 (PSX + Al Meezan, AAOIFI-based screens) and KMI All Shares (all compliant listings).
06—Related terms
Keep building the picture.
The regulatory body responsible for overseeing Pakistan's capital markets, corporate sector, insurance industry, and non-banking financial companies. The SECP must license all PSX brokers.
The entity responsible for clearing and settlement of trades executed on the PSX. Ensures that both the buyer and the seller receive shares and payment upon settlement of the trade.
The institution responsible for maintaining electronic records of securities ownership in Pakistan. All PSX-traded shares are held in dematerialised form through the CDC. Investors access their holdings via a CDC Investor Account or through their broker's sub-account.
The current standard settlement cycle on the PSX, where trades are finalised one business day after the transaction date. The shift from T+2 to T+1 was implemented to reduce counterparty risk and improve market efficiency.
The licence that authorises a brokerage firm to trade on the Pakistan Stock Exchange. All legitimate PSX brokers must hold a valid TREC issued by the PSX.
A unique identification number assigned to every investor registered on the PSX. Required to trade on the exchange. Issued by a licensed broker upon account opening.
Put the term to work
Open a free BSL trading account
Understand the market, then trade it — live PSX data, screening tools, and a research desk that speaks plain English.