Commercial paper: KSE launches over-the-counter market

KARACHI: The Karachi Stock Exchange (KSE) has announced that an over-the-counter (OTC) market for privately placed commercial paper will resume operations from Monday, January 17, 2011.

According to a release issued here on Wednesday, “listing of first ever privately placed commercial paper (CP) of Rs1 billion by Engro Fertilisers Limited on the Exchange” will be the first debt security to be offered for trade through the counter.

The Exchange has expressed hope that the OTC market will provide an “efficient and transparent source of investment” and help companies in “raising funds in a cost-effective manner in a listing regime where requirements are less stringent”.

Published in The Express Tribune, January 13^th, 2011.