Home » Business » KSC Karachi, Mid Day Meetng on Tuesday

KSC Karachi, Mid Day Meetng on Tuesday

KSE KarachiKARACHI: Mid-day meeting on Tuesday between the broker directors and the chairman over the Margin Trading Product (MTS) appeared to have moved towards resolution. All nine directors save for the chairman KSE Zubyr Soomro were present. The chairman participated through tele-talk from his ancestral home at Jacobabad.
Sources in the know of things said that Director (SE) Musarrat Jabeen and another senior official Akeel Saeed representing the apex regulator, Securities and Exchange Commission of Pakistan (SECP) were in attendance as facilitators and to add sweetener to remove the bitter taste left in the mouth, following chairman Soomro’s dissenting note on the launch of MTS and broker directors’ annoyed response.
The KSE management and officials of National Clearing Company of Pakistan Limited (NCCPL) had earlier prepared the ground for talks by approaching the chairman a couple of days ago, under the directions of SECP, to describe the proposed leverage product and dispel his apprehensions.
Sources other than the MD of KSE, who would not return calls, gathered that most of the issues had been amicably settled. “The one remaining were the chairman’s reservations over the individual financier (due to money laundering risk) and about the default proceedings of MTS”, a person close to the talks said. They translated them to mean that the chairman/SECP expressed their reservations over an individual being the financier in the MTS and secondly that in case of default under MTS, the broker ought to be the target of recovery proceedings and not the client, as was the case in the historicallyin the past prevalent “badla”.
Could those turn out to be roadblocks in the launch of MTS? Most stock brokers were not definite. But discussions with a top official of the SECP, who asked not to be named, revealed that the apex regulator was willing to move ahead with the product even if 70 to 80 percent of the concerns highlighted by the chairman were addressed.
“There is no complete risk free environment”, they asserted. But they cautioned that the MTS would must pass through one more stages. Those were approval by the KSE Board, whether that is sought in a separate meeting or through a circular resolution. And secondly, the SECP would be necessary to give its nod. “We will certainly comb the product before putting it up on the market”, said the SECP official.
As the Margin Financing and Margin Trading rules had already been framed a month ago and placed on the SECP web-site, no regulatory delays were likely to occur on that front. Regarding the formal go-ahead from the ministry of finance and that of Law, the SECP official said it was likely to get smooth sailing.
Broker protests
Meanwhile, the signature obtaining campaign from brokers was still on. Haji Ghani Haji Usman, a former director who was spearheading the movement said that stock brokers stood united against the nomination of a non-member chairman of the KSE by the SECP.
“We have already obtained signatures of 68 stock brokers (total strength being 200) who have agreed to move a resolution in an odd general meeting of the KSE to bring about that change in the bourses’ articles of association”, Haji Ghani said.
They said that the campaign would collect momentum after Ramazan and it would be simple to get simple majority in the meeting of members present. They explained that since the non-member chairman had no stake in the market, they lacked interest and knowledge to lead the Board.
The SECP official in Islamabad, when asked to comment said that the Board had been restructured under the market reforms undertaken several years ago. “There is no way to revert to the elderly process of all-broker board or a broker chairman”, they said.

Like this story?

More News on EPakistanNews.com

Pakistan News update 24 hours, latest breaking news updates in Pakistan, Pak news, Pakistan Urdu columns, latest news pakistan, political news updates, E Pakistan Newspaper, Karachi News, Karachi Updates, Lahore news, Islamabad news, Multan news and more breaking news, E Pakistan News brings Latest Pakistan News, headline news, pk politics, News online, sports, politics news from Pakistan.

Home - Disclaimer - Follow us on Twitter - Like us on Facebook

Copyright © 2010-2015, E Pakistan News, All rights are reserved.
This material may not be published, broadcast, rewritten or redistributed without permission are strongly prohibited.
if you need any further assistance please contact us via email epn@epakistannews.com