i e Presentation Seminar

Securities and Exchange Commission

of Pakistan

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SECP established under the SECP Act, 1997 became operational in 1999 as successor to the Corporate Law Authority

It is mandated to administer and enforce laws pertaining to; Corporate sector Capital market Non-Bank Finance Companies (NBFC) sector Insurance sector

SECP Act 1997 lays down oversight (Policy Board) and internal structure

(Commission) structure of SECP

SECP

INVESTOR EDUCATION PROGRAM

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Investor Education: Financial Inclusion

Share of Population with Formal Financial Access (%)

14% in Pakistan (Lowest in the Region)

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Regional Comparison Indicator Pakistan Turkey Bangladesh Thailand

Population 187,000,000 73,722,988 158,570,000 66,870,000

# of Investors 194,000

(.13%)

4,132,704

(5.6%)

2,804,629

(1.77%)

3,050,000

(4.6%)

Insurance

Penetration

0.7% 1.28% 0.94% 4.1%

# of CIS Unit

Holders

140,000

(.075%)

3,626,017

(4.9%)

N/A 1,550,000

(2.3%)

Participants of

Pension Funds

2,000

(.001%)

2,638,310

(3.6%)

N/A 3,400,000

(5.1%)

Savings Rate 13.8% 12.7% 19% 30.7%

Literacy Rate 56% 90.8% 48.8% 93.5%

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180 Million Population

30 Million Internet Users

15 Million Mobile Web Users

11 Million Global ranking is 27

2 Million 9th most visited website

16.7%

6.1%

36% Internet Penetration

Facebook Penetration of Total Population

Facebook Penetration of Internet Users

PAKISTAN 20th largest country on internet

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Youth,School& College students

Non Resident Pakistani

Salaried Class

Traders and Businessmen Professionals

TARGET MARKET

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INVESTOR EDUCATION PROGRAM

Objectives

I. Educate and create awareness amongst general public about saving and investment including financial planning and budgeting

II. Increase awareness about the financial markets (capital market, non-banking financial and insurance sectors) and how to go about making an investment

III. Educate target groups about different financial products; risks involved; rights and responsibilities and investor protection services

IV. Build investor confidence in capital market, non-banking financial and insurance sectors.

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INVESTOR EDUCATION PROGRAM LOGO

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PROGRAM NAME & TAGLINE

Jama Punji Jamapunji, an urdu word meaning all savings. The term is mostly used in connotation of lifelong

savings of an individual. The mid age group of the

target audience take this word as life-long savings

and the younger group identifies the term as

savings till date.

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FEATURES OF IEP

Under the IEP, education would be imparted through:

Digital Means :

Web Portal

Mobile Applications

SMS

Social Media

Physical Interaction

Seminars, Investor Days, Workshops

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WEB PORTAL The Web Portal, through subscription by participants, shall be a source of data to tap potential investors and deepen the capital market of Pakistan. The Web Portal shall be interactive, user friendly and dynamic. Some of the features of the Web Portal include the following: Public/ Private Member Area Education Center Mock Trading Platform Risk Profiler & Scam Meter Quizzes & Games Publications News & Alerts Live Chat Window Media Center (Documentaries, Videos, Webcasts & Podcasts) Poll and Surveys

SMS SHORT CODE/MOBILE PLATFORM

PTA approved mobile short code service in multi language

connect with existing/potential investors & insurance consumers

promote investor & insurance education awareness & protection campaign.

provide a platform to report complaints.

Investor alerts/notifications/news

Digital Means

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MOBILE APPLICATIONS

Mobile applications shall be developed and made available to registered users. Features include: Scam meter Branch locator Verification of market participants Games

SOCIAL MEDIA

Investor Education Web Page Setup & Design Facebook , Twitter & LinkedIn Page Management Promotional activities Placement of digital advertisements

Digital Means

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Seminars / Conferences/ Lecture Series/ Quizzes/

Competitions targeting the following:

General public, Corporate Institutions, Clubs, Associations, etc.

Students of universities and schools

Physical Means

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Presentation Name/ Company Name:

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Introduction to Capital Market

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Instruments of Capital Market


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MARKET OPERATING SYSTEMS


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Investor

Stock Market

Broker


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Trade Flow


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Investor Registration

Pre-trade Margin

Order Making Order

Execution

Trade Confirmation

Data transfer to NCCPL

Netting of Trades

Balance Orders

Money Obligation

Instruction to Clearing Bank

Debit Buying Broker

Credit Selling Broker

Securities Obligation

Instructions to CDC

Pick from Seller A/c

Park in Buyer A/c


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Initiatives for investor protection

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CDS

Broker

House account (beneficially owned

by broker)

Main account (transitory account)

Sub-account (beneficially owned

by client)

CDC Investor Account

(beneficially owned by investor)

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Main Account

NCCPL

[shares purchased/ sold]

Sub-Account House Account

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Clearing Company

House Account

Sub Account

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Risk Management in capital markets:

RMS

Margins

pre-trade margins

Exposure Margins

Mark-to Market losses

Concentration margins

Liquidity margins

Special margins

Selection criteria

margin eligible securities

uniform criteria for leverage markets

limits on trading

Exposure limits

Position limits

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CDC [CDC access]

IVR

SMS

E-alerts-email

NCCPL UIS

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45 Market Highlights - KSE

Description 2010 2011 2012 2013 2014

Number of Listed Companies

652 639 590 569 557

Total Listed Capital Rupees in Billion

910 944 1,070 1,116 1,160

Total Market Capitalization Rupees in Billion

2,732 3,289 3,518 5,155 7,023

KSE-100 Index

Year End

High

Low

9,722

10,667

7271

12,496

12,682

9,516

13,801

14,618

10,842

21,006

22,758

14,143

29,652

29,790

21,363


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THANK YOU

Documents

i e Presentation Seminar