Dear reader, please upgrade to the latest version of IE to have a better reading experience. Out of listed companies, paid dividends to their shareholders while as many as did not despite earning profit, according to Karachi Stock Exchange KSE Annual Report Whether the corporates earning profit should be forced to pay dividend or the decision between payout and retention should be left to the company boards has remained a subject of intense debate.

Since the government holds more than half the total stock holdings in the market and the dividends received from high return yielding stocks is the major source of revenue for the state, non-payment of dividend is a big drag on its receipts. For the year , the government set a target of Rs82 billion as receipts from dividend on its investments; the sum was revised upwards from dividend receipts at Rs76bn.

Back in , the government through the Finance Bill made it mandatory for all listed companies with free reserves of more than 40pc of the. But whatever the reason, the trick worked for a time. In most board rooms of profit earning companies, it was thought wiser to reward the shareholders when majority stake was vested in directors themselves.

But heads at many major corporates dismissed the idea of arm twisting companies by the government and interfere in what they said was clearly the prerogative of the board of directors. The thought of high valued dividend-yielding companies, seeking to step out, proved unnerving for the corporate monitors. It forced the government to quietly scrap the compulsory dividend payout regulation.

A corporate lawyer said that he believed that the dividend payout should best be left to the company directors. Yet, he said that where companies fatten their reserves at the cost of investors, they ought to be made to share the fortunes with the shareholders. Tariq Iqbal Khan, the former chairman of NIT — the largest mutual fund in the country — argues: On a mobile phone?

Get the Dawn Mobile App: Apple Store Google Play. There is no effective check and balance on stock exchange, not only that companies are not paying dividend but who they are paying dividend are paying very less they are expert in hiding their income. The authorities concerned have no concern at all whether the things are in order and transparent or the companies are following rules and regulations in letter and in spirit after seeking the investment from the general public.

Every day, every month and every year hundred of thousands of people lose their hard earned money due to unfair and nontransparent market tactics and cruel performance. Small and medium sized investors are robbed of billions of rupees annually in this cruel business. SECP and Stock Exchange and other authorities do not take any action against the looters Dead companies and investigate their accounts or they don't join their heads together to legislate harsh laws in order to safe guard people's money and to ensure a transparent performance of the market.

The companies who have defaulted and who are used to hide their income and beside those companies of which there is a long list who have long ago devoured people's hard earned money and now they do not exist any where on the list, their companies , their assets and their all valuables be auctioned and then be equally distributed among their share holders.

Finance minister please wake up and change this cruel and unfair trend in stocks across the country. It is a free market.

Sell those stocks and buy stocks that are paying dividends if blue chips stocks are part of your investment strategy. This news will keep Pakistan's stock market on the slide.

Whether or not to pay dividends is a company's decision and there is nothing wrong with it.

Top 40 Highest Dividend Yield Stocks | KSE - Karachi Stock Exchange | Research | PE Ratios | Book Value | Dividend Yeild | ROE | ROA and much more

A lot of profitable companies do not pay dividends. Apple I believe is one of them. If companies are not paying dividends because they are manipulating the books then why are the governance processes so weak? Why doesn't KSE introduce strong governance requirements for listing on the exchange with reinforcements through deep occasional audits?

Typically, in mature financial markets such as U. The Stock Exchange is controlled by a few so called broker families, the rest become easy prey. The Stock Market has to be well policed so annual figures are not leaked, its determination is easy with buying or selling trend prior to release of annual figures. Spyrogyra, In mature markets like in USA, its OK to not pay didvidends, but in markets like that of Pakistan, it should be made compulsory to share the huge profits via dividends, since companies easily manipulate their accounts and the even their share price causing damage to small investors.

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Comments 11 Closed Best Newest Oldest. May 23, Please inform the public with the names of these firms. Few things that are unclear to me based on the article and comments: May 24, Why the rules can not be amended to fix a floor rate of payout.

Spyrogyra Apple does pay dividends. Their last payout was on the 17th of this month. Desk Mrec Top Advertisement.

KARACHI STOCK MARKET NEWS | Updates on the Karachi Stock Market, with news, company dividends and KSE index hypufiyuyuq.web.fc2.com rollercoaster of a day trader's dream /nightmare riding the KSE index. posts and counting…

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