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Presentation 2

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Syed Ali Haider
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37 views18 pages

Presentation 2

Uploaded by

Syed Ali Haider
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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S H A H RYA R & A L I

Securities
Operations Services
provided by
securities firms
SERVICES

• Trade Execution and Settlement


• Custody and Safekeeping
• Portfolio Management Support
• Asset Servicing
• Reporting and Record-Keeping
• Risk Management and Compliance
Support

2
SERVICES

• Securities Lending and Borrowing


• Brokerage Services
• Research and Analysis
• Clearing and Settlement Services
for Institutional Clients
• Derivatives and Structured
Product Support

3
SERVICES

• Client Support and Advisory

4
S H A H RYA R & A L I

Regulation of
Securities
Firms in
Pakistan
K E Y R E G U L AT O RY B O DY

• Securities and Exchange


Commission of
Pakistan (SECP)
• Pakistan Stock Exchange
(PSX)
• Central Depository
Company (CDC)
• National Clearing
Company of Pakistan
Limited (NCCPL)
SECP

• Responsible for licensing and regulating


brokers, asset management companies, and
other market participants.
• Enforces compliance with laws such as the
Securities Act, 2015, Futures Market Act, 2016,
and Companies Act, 2017.Data reveals a steady
increase in consumer demand for sustainable
products, presenting an opportunity for our eco-
friendly offerings.

7
PSX

• Governs listing, trading, and disclosure


requirements for securities firms.
• Oversees member brokers' compliance with
operational and risk management standards.

8
CDC

• Provides custody and clearing services for


securities transactions.
• Ensures smooth settlement processes for
securities firms.

9
NCCPL

• Manages clearing and settlement operations.


• Provides a risk management framework for
trades executed on the PSX.
• Key Regulations
• Licensing and Registration

10
S H A H RYA R & A L I

Risk of securities
firms
FINANCIAL OVERVIEW

• Market Risk
• Credit Risk
• Operational Risk
• Liquidity Risk
• Regulatory and Compliance Risk
• Reputational Risk
• Foreign Exchange Risk
• Systemic Risk
• Economic and Political Risk
• Legal Risk

12
Valuation of
Securities
Firms in
Pakistan
FINANCIAL PERFORMANCE ASSESSMENT

Revenue 1. Commission Income, Trading volume,


Generation other income
2. Net Profit Margin, Return on Equity
(ROE), Return on Assets (ROA)
Profitability

Operating Costs
3. Equity Capital, Debt Levels, Cash Flow
Balance Sheet
Strength

14
CLIENT BASE AND MARKET POSITION

Client 1. Retail vs. institutional investors


Demographics
Client Retention
Market Share

15
VA L U AT I O N A P P R O A C H E S

Income-Based 1. DCF Model, Profit Multiples


Valuation
Asset-Based
Valuation
Market
Comparables
(Comparable
Company Analysis)
Transaction
Comparables

16
C O N C LU S I O N

• Valuating a share brokerage house in Pakistan


involves understanding its financial health,
client base, regulatory compliance, market
position, and growth prospects.
• Combine financial metrics (such as profitability
and liquidity) with qualitative factors (like
management and competitive advantage) to
form a comprehensive valuation. Tools like DCF,
comparables, and asset-based valuation can
then be used to finalize the value.

17
Thank
you
S H A H RYA R M U H A M M A D

&

SYED ALI

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