Legendary Role as a Stock Exchange:
The Company, under the name of Lahore Stock Exchange (Guarantee) Ltd. (“LSE”), was incorporated on October 5, 1970, as a company limited by guarantee. It was the 3rd stock exchange of the country after KSE and DSE. It was established to facilitate the investors of the Punjab and Northern areas, by providing them an access to the capital market. LSE was shifted to its own newly constructed building, i.e., LSE Plaza, located at 19-Khayban-e-Aiwn-e-Iqbal, Lahore, in 1992. LSE provided a transparent, efficient, fair and investor friendly environment for the benefit of investors and growth of listed companies. The goal was to bring LSE up to international standards in operational, technical, regulatory and quality management areas and to ensure that not only domestic but also foreign investors are attracted for the development of the country. With the passage of time, LSE became a key institution in the financial sector of Pakistan. LSE became a member of the Federation of Euro-Asian Stock Exchanges in 1995 and of South Asian Federation of Exchanges in 2000.
LSE introduced an automated trading system in 1996 and became the first fully electronic stock exchange of Pakistan. Afterwards, LSE developed its own new software for automated trading at the stock exchange, namely ‘Ultra Trade’ in the year 2000. Later on, the same software was also sold to Karachi Stock Exchange. In the next year it launched an Internet Trading System for the brokers. In the year 2003, LSE implemented Automated Trade Risk Filter (TRF) to monitor the brokers’ trading exposure on a real time basis. LSE also opened trading floors at Faisalabad and Sialkot to facilitate business activities and LSE launched a series of investor education and awareness programs across the province. In 2007, LSE launched a common trading platform with Islamabad Stock Exchange through Unified Trading System (UTS). In 2008, LSE marked the first international sale of its software Ultra Trade to Ghana Stock Exchange. In the next year the in-house IT team developed Securities Lending & Borrowing (SLB) Software and sold it to NCCPL. LSE has also developed Broker Back Office Software namely Smart Stock System (SSS), which is being used by more than 70 brokerage houses of the Country.
Creation of Capital Market Infrastructure Entities:
LSE has a proven successful track record and has been instrumental in establishing the prime capital market infrastructure companies of national importance like Central Depository Company of Pakistan Ltd., National Clearing Company of Pakistan Ltd., Pakistan Mercantile Exchange Ltd., Pakistan Credit Rating Company Ltd. and Institute of Financial Market of Pakistan, by providing much needed seed capital at the time of incorporation. The Company has a vision and great desire to contribute more on this account.
LSE Twin-Tower Plaza:
LSE Plaza, a landmark of the city of Lahore. It is positioned in the galaxy of buildings of repute and design facilitating cultural, commercial and institutional activities. It is also a hub of the Capital Market and has a high frequency of visitors which includes high net worth investors and the general public. Pakistan Stock Exchange Limited, over 100 stock brokers’ offices, 6 Commercial Banks, CDC, NCCPL, along with other tenants are the present occupants in the two Towers of the building. According to a recent survey, the average daily visitors in LSE Plaza are over 4,500 persons per day.
LSE Corporate Development:
SE was corporatized and demutualized and converted into a company limited by shares and received certificate of re-registration on August 27, 2012, as ‘Lahore Stock Exchange Ltd.’, under Stock Exchanges (Corporatization, Demutualization and Integration) Act, 2012. Based on revaluation of assets & liabilities as of March 31, 2012, its paid-up capital was determined as Rs. 1.282 billion. The general body of LSE in the EOGM held on October 28, 2015 approved the Scheme for integration of stock exchange's business of LSE with KSE to form Pakistan Stock Exchange. The residual entity was renamed as LSE Financial Services Ltd. (“LSEFSL”). Consequently, it was converted to a Non-Banking Finance Company, on January 11, 2016, with the approval of SECP and ceased to exist as a stock exchange.
LSEFSL’s Business Activities:
LSEFSL is licensed to carry out the business of Investment Finance Services. The Company has already invested around Rs. 500 million in the Margin Trading System (MTS). MTS Transactions are executed through On-Line Trading System provided by NCCPL to market participants. LSEFSL has already launched its first product “Enterprise Expansion Financing (EEF)” under which the company offered loans against shares of listed companies. The Company has the vision to offer a wide range of financial products and services to its customers as the license granted to LSEFSL for Investment Finance Services is valid for undertaking Leasing, Housing Finance Services, Discounting Services, Custodian and Trustee