What the Pakistan Stock Exchange is
The Pakistan Stock Exchange (PSX) is the country's exchange for listed company shares and some other securities. When you buy shares on PSX, you own part of a listed company. This is different from a CFD (contract for difference), which only tracks a price and gives you no ownership.
Several institutions handle a share trade:
- The broker takes your order and sends it to the exchange.
- NCCPL (National Clearing Company of Pakistan Limited) clears and settles trades. It matches what each side owes and makes sure money and shares change hands.
- CDC (Central Depository Company) holds shares in electronic form, in an account or sub-account in your name.
For a fuller walk-through, start with PSX explained.
Ready to try it on a real or demo account?
Partner link · trading carries a high risk of loss
Who regulates the market
The regulator is the Securities and Exchange Commission of Pakistan (SECP), with trading in listed securities and commodities only via SECP-licensed securities and futures brokers. In practice, you cannot trade listed shares directly with the exchange. You need a licensed broker.
To check a broker, use the official lists. On where to look, per the SECP, lists of licensed brokers are on the PSX and PMEX websites. Confirm that a firm appears there before you send any money. Also check that you are contacting it through the contact details on its official website.
The regulator also warns about platforms that sit outside this system. On offshore platforms, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. The Law and regulators page covers this in detail.
What this section covers
The section follows the path of a retail investor, from learning the market to paying tax on gains:
| Topic | What you will learn | Page |
|---|---|---|
| Indices | How the main benchmarks are built and what they measure | KSE-100 index, narrower and Shariah indices |
| Accounts | How to open a trading account and how CDC accounts and sub-accounts differ | Open trading account, CDC accounts |
| Hours and limits | Market sessions, daily price limits and market-wide halts (circuit breakers) | Hours and limits |
| Settlement | When shares and money actually change hands after a trade | Settlement cycle |
| Tax | How capital gains on shares are taxed | Capital gains tax |
| New listings | How IPO subscriptions work | IPOs on PSX |
| Overseas Pakistanis | Investing in PSX through a Roshan Digital Account | Roshan Digital and PSX |
These pages describe rules and how the market works. They do not show live prices or quotes. For current prices, use the PSX website or your broker's platform.
How to use this section
If you are new to PSX for beginners topics:
- Read PSX explained to understand the roles of the broker, CDC and NCCPL.
- Read Open trading account and CDC accounts before you choose a broker.
- Read Hours and limits and the settlement cycle page, so order timing and the arrival of shares make sense.
- Look up any unfamiliar term in the trading glossary.
If you already trade:
- The index pages explain index construction and the difference between a conventional index and a Shariah-screened one.
- The tax page sets out how gains are treated and what to keep on record.
- The circuit breaker rules matter when you plan exits in a fast-moving market.
- Fundamental analysis and risk management apply to share portfolios as well as to other markets.
Risk in the stock market in Pakistan
Share prices can fall sharply, and a company can perform badly for years. Buying on borrowed money or using margin products increases both gains and losses. Leveraged trading can lose money fast.
Before you invest in PSX, decide how much you can afford to lose, spread your holdings, and keep records for tax.
Frequent questions
How do I invest in PSX?
Open an account with an SECP-licensed broker, with shares held through CDC. The Open trading account page explains the process.
Can I trade PSX shares without a broker?
No. Securities and Exchange Commission of Pakistan (SECP), with trading in listed securities and commodities only via SECP-licensed securities and futures brokers.
How do I check whether a broker is licensed?
On broker lists, per the SECP, lists of licensed brokers are on the PSX and PMEX websites. Check the firm's name there and use only its official contact details.
What is the difference between CDC and NCCPL?
CDC holds your shares electronically. NCCPL clears and settles trades between buyers and sellers.
Does this section show live PSX prices?
No. It explains rules and structure. For current prices, use the PSX website or your broker's platform.
Are gains on shares taxed?
Yes. Capital gains on shares are taxed under Pakistani tax rules. The capital gains tax page explains how.