Structural Changes and Institutional Developments and Their Impact on Capital Market: A Case Study of Karachi Stock Exchange

Abstarct: This paper identifies the position of stock market in Pre-reforms and Post- reforms period and introduction of the technological advancement at Karachi Stock Exchange (KSE) during the period from 1986 to 2010. The study is based on using the information acquired from the Karachi Stock Exchange, Security and Exchange Corporation of Pakistan (SECP) and Government and Corporate sources. The descriptive analysis of policies and comparing of pre-reforms and post- reforms performances and the impact of the institutional developments after the introduction of Karachi Automated Trading (KATS) and Central Depository System (CDS) and other structural changes has been discussed. It is therefore concluded that Pakistan’s equity market is underdeveloped meanwhile the Karachi stock exchange indicates improvements specially after liberalization of economy and removal of restriction on repatriation of capital and dividends