Brokers to settle CSF by January 5

KARACHI - Karachi Stock Exchange, brokers and the National Clearing Company Limited Pakistan have decided to settle the CFS payment issue by January 2009, The Nation learnt on Monday.
This was decided in recent meetings held between the stakeholders in Karachi to discuss the stock market crisis.
Sources said that the director of the outgoing board of the KSE held a farewell meeting with the brokers, KSE, SECP and the NCCPL officials on Monday.
During meeting the stakeholders further discussed the implementation of Rs 20 billion stock market fund from January 1, 2009, being led by the National Investment Trust (NIT). The NIT, State Life Insurance and National Bank of Pakistan would contribute Rs 15 billion for the fund (Rs5b each), while Rs5b amount would be provided by a consortium of different banks, sources said.
A KSE director on the condition of anonymity told The Nation that the regulators of KSE have set January 5, 2009 as the settlement date for Continuous Funding System's (CFS) borrowers and financiers. The National Clearing Company of Pakistan (NCCPL) and KSE will notify the settled CFS shares amount on the said date.
It is pertinent to mention here that after the CFS settlement, stock market will only deal in delivery shares. However, analysts predict pressure in CFS shares till the matter is over.
Badi-uddin Akbar, Director of NCCPL, told The Nation that more than 88 Securities have sent their consent letter to National Clearing Company of Pakistan Limited (NCCPL), while 62 financiers submitted their willingness to buy these shares here on Monday, the last day to submit their outstanding settlement.
Sources in the NCCPL revealed that the near about Rs4.5 billion to Rs6 billion worth shares submitted to the outstanding CFS Mark II settlement to National Clearing Company of Pakistan Limited (NCCPL).
Earlier, the NCCPL extended the date of filing requests to settle the CFS by Monday. The company invited all the financers and the affected broker to participate in the proposed CFS Mk-II Square-up Scheme.
The NCCPL was compiling the list of consents sent by the financees and the financiers, and the final amount of these shares is expected to be announced on Tuesday (today). It was decided that the government owned institutions and financiers will buy these shares at 12.5 discount rate from their December 24, 2008 closing prices.