A meeting of the Securities and Exchange Commission of Pakistan (SECP) – headed by the SECP chairman, commissioner and other senior officials – was held here today with the board of directors, management and senior members of the Karachi Stock Exchange (KSE).
The SECP chairman emphasised upon the KSE to take steps to put in effect already agreed schemes of arrangements for enhancing brokers’ capacity to execute business. Under the said scheme each active broker will be allowed an amount of Rs50 million to be utilised against a bank guarantee from the Clearing House Protection Fund as margin/collateral against their trades. It was, however, emphasised that in line with international best practices, risk management needs to be consolidated and shifted to the National Clearing Company of Pakistan (NCCPL) with a settlement guarantee fund, so as to support NCCPL to function as a central counter party.
A committee of the stock exchanges and NCCPL was constituted to finalise necessary modalities for the same, and submit its recommendations to the SECP.
Published in The Express Tribune, July 14th, 2012.
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