Members for closure of Karachi bourse

KARACHI - The members of the Karachi Stock Exchange have proposed its management to close down the exchange if their proposals were not addressed immediately, as panic mounted among the brokers following the default of a KSE member during Friday trading.

After the CFS rate touching the peak of 68 per cent on average, the alarm spread among the KSE members and they proposed its board to ask the National Clearing Company of Pakistan Limited (NCCPL) for the CFS buying of Rs 700 million. When the NCCPL failed to arrange this amount the members asked the management to freeze the Continuous Funding System on the point of 24 per cent otherwise halt the trading at the KSE for 15 days.

In this regard, the KSE board has called a meeting with the SECP on Saturday (today) to review the situation emerged after the record increase in CFS rate.

Meanwhile, the Karachi Stock Exchange and National Clearing Company of Pakistan Limited (NCCPL) have decided to settle the Friday’s CFS for share transactions with the CFS volumes of coming Monday.

Decision to this effect was taken in a meeting between KSE board and NCCPL held on Friday in the backdrop of record high increase in CFS rate.

Meanwhile a well-known broker, who has been director of the Karachi stock market (KSE) as well finally default on exposure counter owing to not paying in range of Rs30million to Rs100 million, thus the KSE has two options either to sell his card or 20 per cent security held with the exchange against exposure payments, sources told The Nation.