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IFC:It is a private arm of the World Bank. Code of corporate governance is the way to run a listedcompany as per the rules of SECP.For example: Accounts are fully prepared or not.

Information about the minority share holdersInstitutional shareholders:

When big institutions invest or have shares in some another company then these shares are calledas institutional shareholders. For example PTCL has shares in its subsidiaries.Investments:No body invest in the stock exchanges in actual the shareholders and the companies makeinvestments in the other companies.Fix invest securities:TFC: it stands for term finance certificates.KIBER: it is basically an indicator of the share values. It stands for Karachi institute of businessexchange rates.

Code of corporate governance:It is the governance of the companies. It tells how to run the company. Some useful informationis given below. Listed company must have hare capital.

Code of corporate governance contains rules related to the ordinance.

How the unused machinery can be sold.

There are so many issues which are governed by the SECP.

More information regarding it can be downloaded by the website of SECP.

All listed companies should insure the employees job security and investment.

Non-executive director:The director who is not actually working with the organization for which it is selected as a

director is called as non-executive director. They only receive fee of the meeting. Board pay the fee to the non-executive directors for meeting in dollars.

They are those people who are nominated as director on the board and stock exchange.

90,000 is the fee of the meeting of the government bank

Banks also have the sub committees whom 5 to 6 meetings are held in every company.

Few of the directors contribute a lot for the welfare of the companies. Non-executive can be the shareholder of the company. Thats why he will be qualified as

a director for the board meeting.Code of corporate governance:Good company governance has an impact on local and foreign investors. It increases theconfidence of the investors by defining rules and regulations. Like the code of conduct, ensuring

of annual accounts, updating of accounts.Type of investors:

Local investors

Foreign investors

The investors must know the correct accounts, profit and loss statements of the company.Rating companies: It is not compulsory for the companies to get rated by the rating companies.

Shares of the companies can also be the criteria of rating.

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Manipulation

Companies reputation I the market

Season foundations:NGO, non-profit organization 100 of well-established trustee., they run the companies veryprofessionally and get donations from the others. It means their governance are good.

Good governance is very inspired one for the investors. as markets compete to attract thecapitals.Foreign investors: Foreign investors are bringing foreign currency

Direct invest on the stock exchanges

Invest in the equity ventures

To bring foreign exchange by long term and short term loans

They will invest in those companies where they will have the confidence of gaining back

it. If you invest your money in a bank of America. The rate of return may be .5

In Pakistan the rate of return on investment in very high rate i.e. 11%

The rate of return is rising so the foreign investment is also increasing. Foreign currency loans are invested by World bank and Asia bank.

This loan is given to you under certain conditions.

Q: what is the critical problem in foreign currency loans?The risk is of foreign currency exchange rates and the fluctuation in the rates of foreign currency.Importance of corporate governance:The importance of corporate governance is to do the accountability to work for prosperity ofpeople and country. In this way saving, infrastructure will increase.Introduction of code of corporate governance:In 2002 in the world code of corporate governance has been introduced as Pakistan is an

unfortunate country where such type of corporate governenca was not introduced. At that timeMr. Khalid raza said, I will introduce the corporate governance here and also reinforce it. InLUMS there was a seminar in which he said,The code of corporate governance is the listed rules and regulations for the companies. 97%people opposed it. He firstly introduced the code of corporate of governance. Before this thechairman of stock exchange is used to be the chief executive. Some crimes are artificially built.Indicator:Stock exchange is not an indicator of the business. Fatima fertilizers has a balance sheet of 76billion rupees.Executive director:The one who is elected as a director who is also the employee of that very company and also get

compensation is called as executive director.Independent director:Any person who is neither the employee of the company nor the relative of any of the employeeof the company, and also he is not doing any kind of business with the company. He can be a nominated director as well.