KARACHI - The desperate Karachi Stock Exchange (KSE) Board has forwarded two unusual proposals to the government demanding guarantees to bear the burden of losses to market and margin calls, if the stock market headed downward following the pumping of Rs 20 billion 'equity market fund' into the market. And provide security to the foreign investors to also endure their losses if they faced after holding up shares worth Rs 30 billion at a fixed price within one-year period. This was stated by the KSE authorities during a meeting with KSE Board, SECP and Finance Minister Syed Naveed Qamar here on Sunday. The KSE Board will meet on October 10 to review the price freeze mechanism and it is being expected that in the meeting, it may announce to remove the floor from market by October 16 to avert further market erosions, whether their proposals were met or not, the meeting decided. "Since long the KSE board has been implemented floor in the market, now it's not possible for it to further extend the period of floor to the next month," source attended today's meeting said. However, as far as the proposals are concerned, the finance minister stated that he will inform about government's standpoint to the board, whether the proposals are being accepted or not till coming Wednesday, October 8, 2008. According to sources, the SECP is going to allow the CFS shareholder to get banking finance by pledging CFS holdings. On the other hand, the SECP has decided to ban the day trading of the Mutual Fund Industry, the sources added. Those, who closely watch the market, termed the main proposals of the KSE Board as impracticable in view of the sinking economy of the country and stated that government is not in a position to accept such type of proposals even in the situation when it is facing worst economic crisis. Sources observed the motive behind this meeting was to chalk out strategies to avert any free fall in the market, which is being highly expected to be occurred after the unfreeze, in this regard the board was doing its utmost to seek any package from the government side to reassure the confidence of battered investors before removing floor who are already confused whether to deposit more money in the account or sell off some of their assets. Monitoring Desk adds: Securities and Exchange Commission of Pakistan (SECP) has directed Karachi Stock Exchange to immediately remove the share prices floor at the level of 9,144 points. The directives came at the meeting of SECP and KSE, reports a private TV channel. The meeting reviewed the removing of the 100 Index floor in the absence of sufficient liquidity in the market. Director KSE told the channel that the decision regarding removal of floor will be taken after October 15.