KARACHI (November 17 2006): The management of Karachi Stock Exchange (KSE) has decided to arrange a Special Session for conversion of In-House Badla into Continuous Funding System (CFS) through automated interface on Saturday.

The KSE on Thursday announced that the conversion of In-House Badla to CFS as agreed with the Securities and Exchange Commission of Pakistan (SECP), shall be subject to the conditions/parameters, including (a) this facility will only be available in 71 CFS eligible scrips already notified, second ticket sell/buy will be entered by members, shares must be placed in Blocked Account, the existing risk management measures shall be applicable for conversion process and Cap on Premium rate will apply as already notified.

For the purpose of conversion, Capital Adequacy and Pre-Trade verification of margins and Ready Market purchase requirement will not apply. However, any shortfall in the capital adequacy of members due to conversion shall be brought within current prescribed limits latest by November 30, 2006.

Those members who are availing this facility through the Special Session are required to furnish the following details in advance in respect of In-House Badla as on November 13, 2006, before hand: (I) Symbol, (II) Quantity, (III) Client name & identification number for both financier and financee and (VI) rate of premium.

Copyright Business Recorder, 2006