Abstract:
Stock Exchange is an organized marketplace where members gather to trade securities. Karachi Stock Exchange is the biggest and most liquid exchange and has been declared as the “Best Performing Stock Market of the World for the year 2002”. After the market crash on March 2005, there was a need to reform Risk management system (RMS) so that these kind of disasters do not take place in future. This system basically provides a policy framework to regulate the stock exchange so that irregularities can be reduced and proper guidance should be available for the stakeholders of the stock market So on wake of these events SECP introduced revised RMS reforms on 4th December 2006.
