Transition of Karachi Stock Exchange from Frontier Capital Market to Emerging Capital Market

Abstract

In the current context of globalization and the subsequent integration of the global markets this study captures the trends, similarities and structural reforms needed in Karachi Stock Exchange in comparison to its international emerging markets. This study covers Bombay Stock Exchange, Shanghai Stock Exchange, and Bursa Malaysia from various socio-politico-economic backgrounds. Stock markets around the world assist the investors to analyze the condition of an economy in order to get maximum return on their investment. Its operational efficiency is important for the betterment of the financial system since like any other market it provides a forum for buyers and sellers. It brings the financial institutions together to create money. This research focuses on the gaps in structural, trading and settlement process of Karachi Stock Exchange which are to be improved for the transition of KSE from the frontier market to emerging market segment.