National University of Modern Languages

Islamabad
Faculty of Management Sciences

Assignment

Submitted to: Madam Fauzia Mubarak

Submitted by: Abdul Wahab
Numl-S20-11612
M.Com-II (A, Morning)
Q1 Bonds Floated/Issued in Pakistan?
Bonds are issued by governments, municipalities and corporations,
the interest rate, principal amount & maturities will vary from one bond
to the next in order to meet the goals of the bond issuer or the bond buyer
(borrower & lender).
In Pakistan state bank of Pakistan issued the bonds with the permission
of government. Bonds are issued in denominations of multiples of
100,000 & available in the tenor of 3, 5, 10 & 20 years. All types of bonds
issued by the State bank of Pakistan.

Q2 Names of the Bonds?

In the financial market of Pakistan, bonds are either issued by the
Government or Corporate entities.

Government Bonds
Government bond is a debt security loaned by a government to assist government
spending, most often issued in the country’s local interest.
The various types of Government bonds issued by the Govt. of Pakistan are as follows:
 Pakistan Investment Bonds
 US Special Dollar Bonds
 Wapda Bonds
 National Saving Bonds
 and Sukuk

Corporate Bond
Corporate Bond is a debt security which is issued by company and
sold to investors to meet its financial requirements. In Pakistan this is
commonly known as Term Finance Certificate (TFC). Corporate Bonds are
normally issued for a specified time period with an assurance to return the
principal amount of the bond money including interest to the bondholder.
When someone buys a bond, he/she is lending money to the company that
issued it. The company ensures to return the money, on a specified
maturity date. Till that time, it also pays a stated rate of return, which
usually occurs semiannually. The interest payments collected from
corporate bonds are taxable. Unlike shares, bonds do not provide an
ownership interest in the issuing company.
Q3 Denomination of the Bonds?
Rs. 200, 750, 1500, 7500, 15000, 25000 & 40000 denomination
Bonds are currently in circulation. The smallest denomination of 5-Rupee
Prize Bond was first issued in 1964

Q4 Currency in which traded?

In Pakistani rupees bonds are buy & sell in Pakistan

Q5 Listing in PSX?
The PSX was established on 11 January 2016 after the merger of
the Karachi, Lahore and Islamabad stock exchanges. PSX's origins were
laid with the establishment of the Karachi Stock Exchange in 1947,
the Lahore Stock Exchange in 1970 and the Islamabad Stock Exchange in
1992. As of 26 July 2020 there were about 540 companies listed in PSX and
the total market capitalization was ₨7.07031 trillion (US$43 billion).
The investors on the exchanges include 1,886 foreign institutional investors
and 883 domestic institutional investors along with about 0.22 million retail
investors. There are also about 400 brokerage houses which are members of
the PSX as well as 21 asset management companies. One of the PSX's
precursor stock exchanges, the Karachi Stock Exchange, was listed among
the world's best performing frontier stock markets: between 2009 and 2015
it delivered 26% a year. However, in 2019 Bloomberg claimed that the PSX
was the 'world's worst', having erased 'half their market value'. In
December 2016, PSX sold 40% strategic shares to a Chinese consortium for
US$85 million.