LSE Group, formerly known as Lahore Stock Exchange is a Pakistani investment company based in

Lahore Lahore ( ; ; ) is the capital and largest city of the Administrative units of Pakistan, Pakistani province of Punjab, Pakistan, Punjab. It is the List of cities in Pakistan by population, second-largest city in Pakistan, after Karachi, and ...

, Pakistan. LSE Group consists of three companies: LSE Capital, LSE Financial Services, and LSE Ventures, all of them are listed on the

Pakistan Stock Exchange The Pakistan Stock Exchange (PSX), founded as Karachi Stock Exchange (KSE), is a stock exchange based in Karachi, Pakistan. PSX was classified by MSCI as a frontier market on 8 September 2021. Pakistan Stock Exchange was founded in 1947 as ...

History

The Lahore Stock Exchange (LSE) was established in October 1970, under the ''Securities and Exchange Ordinance, 1969'' by the

Government of Pakistan The Government of Pakistan () (abbreviated as GoP), constitutionally known as the Federal Government, commonly known as the Centre, is the national authority of the Islamic Republic of Pakistan, a federal republic located in South Asia, con ...

in response to the needs for the provincial capital of

Punjab Punjab (; ; also romanised as Panjāb or Panj-Āb) is a geopolitical, cultural, and historical region in South Asia. It is located in the northwestern part of the Indian subcontinent, comprising areas of modern-day eastern Pakistan and no ...

. It initially had 83 companies listed and was headquartered at Bank Square in

. The number of listed companies increased to 519 since its inception. In 2000, LSE froze accounts following an unprecedented market crash, resulting in a two-day closure and a one-day trading suspension. The crisis allegedly began when LSE members working for investor Nisar Danka exceeded their exposure limits and failed to settle their clearings. Subsequently, Mian Nisar filed a damages suit under the Central Depository Act, 1979, against the LSE, Central Depository Company (CDC), and the Securities and Exchange Commission of Pakistan (SECP), claiming illegal sale of his shares by the LSE. On 18 December 2006, Justice Jawwad S. Khawaja, in a single bench decision, held the LSE and CDC liable for damages to Mian Nisar Elahi. In January 2007, a division bench of the Lahore High Court suspended the single bench's order, which had mandated the LSE and CDC to pay Rs500 million to Mian Nisar Elahi and other investors. In 2014, the

Federal Investigation Agency The Federal Investigation Agency (; reporting name: FIA) is a border control, criminal investigation, counter-intelligence and security agency under the control of the Interior Secretary of Pakistan, tasked with investigative jurisdiction on u ...

(FIA) uncovered an alleged illegal hundi and hawala operation run by dealers at the Lahore Stock Exchange. The FIA received information about an organized gang operating on the ground floor of the exchange and conducted a raid with the approval of the FIA Punjab Director. Three suspects were arrested during the raid: Syed Alamdar Hussain, Nadeem Khawar, and Sami Aslam. The FIA confiscated assets including prize bonds, cash in various currencies, and gold biscuits. They also seized hundi receipts, electronic devices, weapons, and ammunition. According to the seized records, approximately Rs24.75 billion had been transferred abroad through

hawala Hawala or hewala ( , meaning ''transfer'' or sometimes ''trust''), originating in India as havala (), also known as in Persian, and or in Somali, is a popular and informal value transfer system based on the performance and honour of a hug ...

transactions. The receipts only contained the names of the sender and receiver, along with the amounts involved, without proper documentation. The Lahore Stock Exchange opened branches in the industrial cities of

Faisalabad Faisalabad, formerly known as Lyallpur, is the List of cities in Punjab, Pakistan by population, second-largest city and primary List of cities in Punjab, Pakistan by population, industrial center of the Pakistani province of Punjab, Pakistan ...

and

Sialkot Sialkot (Punjabi language, Punjabi, ) is a city located in Punjab, Pakistan. It is the capital of the Sialkot District and the List of most populous cities in Pakistan, 12th most populous city in Pakistan. The boundaries of Sialkot are joined ...

for trading. The Sialkot branch was referred to as the Sialkot Trading Floor. With effect from 11 January 2016, the Lahore Stock Exchange was integrated with the Karachi Stock Exchange and Islamabad Stock Exchange under the ''Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012'' to form the

List of chairmen

* Noshir F. Dastoor

LSE-25

LSE-25: The Lahore Stock Exchange Twenty Five company index calculates the performance of

stock Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the Share (finance), shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporatio ...

s assuming that all rights issues and

bonus share Bonus shares are shares distributed by a company to its current shareholders as fully paid shares free of charge. *to capitalise a part of the company's retained earnings *for conversion of its share premium account, or *distribution of treasu ...

issues only increase the listed

capital Capital and its variations may refer to: Common uses * Capital city, a municipality of primary status ** Capital region, a metropolitan region containing the capital ** List of national capitals * Capital letter, an upper-case letter Econom ...

so that the prices of the shares are not adjusted as they are in the case of the LSETRI. The LSE25 also assumes that

dividend A dividend is a distribution of profits by a corporation to its shareholders, after which the stock exchange decreases the price of the stock by the dividend to remove volatility. The market has no control over the stock price on open on the ex ...

s paid out by a component company are not reinvested. In summary, in the LSE25, no price adjustments are made when any component company issues cash dividends.

LSETRI

The Lahore Stock Exchange Total Return Index calculates the performance of stocks assuming that all payouts are reinvested in the index on the ex-date. The LSETRI assumes that if a component company issues bonus shares or announces a rights issue it will increase the listed capital. Additionally, the LSETRI also assumes that all pay-outs by a component company are 100% reinvested in the index. Therefore, the LSETRI is adjusted against such payouts announced by any of index constituents on its ex-date allowing the index value to remain comparable over time.

References

External links