ISLAMABAD (January 26 2007): The Securities and Exchange Commission of Pakistan (SECP) has constituted a committee comprising representatives of three stock exchanges, SECP, Mutual Funds Association of Pakistan, stock brokers and bankers to address issues relating to smooth and early implementation of Continuous Funding System Mk II(CFS).

The SECP on Thursday constituted CFS Mk-II Implementation committee under Shaukat Tareen. The CFS was introduced as an interim measure to replace COT/badla financing to enhance the level of liquidity in the market while alternate modes of leverage financing were being developed. The CFS MK-II will adequately cover market risks associated with the current CFS system.

In order to facilitate transparent and efficient financing for the market, the SECP last year proposed authorisation of direct leverage finance in the form of CFS Mk II by eligible brokers, banks and NBFIs.

With a purpose of providing a level playing field for the three stock exchanges a centralised CFS Mk II will be developed at the National Clearing Company of Pakistan (NCCPL). This arrangement would benefit investors as well as financiers who would not need to acquire authorised financier's status of each stock exchange to extend financing and hence financiers would lend money to brokers and people needing finance in any stock exchange in a geographically neutral manner.

The members of the committee are: Shaukat Tarin; Abid Ali Habib, Member, Karachi Stock Exchange (KSE); Adeel Zafar, Member, Lahore Stock Exchange (LSE); Muddassar Malik, Chief Executive Officer, BMA Asset Management Limited; Atif Subhani, Head of Research, Taurus Securities Limited; Naved A. Khan, President, Pakistan Banks Association; Naeem Abdullah, Treasurer-ABN Amro Bank; Mohammad Yousuf, Executive Incharge, Credit-Bank Alfalah; Ali Mahoon, Executive Vice President, Risk Management-Muslim Commercial Bank; Inayat Hussain, Director, State Bank of Pakistan; Nasim Beg, Chief Executive, Arif Habib Investment Management Limited; Najam Ali, Chief Executive Officer- ABAMCO Limited; Hamid Imtiazi, Managing Director, LSE; Aftab Chaudhree Managing Director, Islamabad Stock Exchange (ISE); Aftab Diwan, Chief Operating Officer, Central Depository Company of Pakistan; Muhammad Lukman, CEO- National Clearing Company of Pakistan; Muhammad Ali Yacoob, AKD Securities; Ashraf Kothari, CEO, Concordia Securities; Zafar Abdullah, Executive Director, SECP; Miss Musarat Jabeen Joint Director, SECP; Ashraf Tiwana Registrar Appellate Bench, SECP; Abdullah Jan, KSE; Haroon Askari, Chief Manager Operations, KSE; Sani-e-Mahmood, KSE and Rafique Umer, KSE.

Copyright Business Recorder, 2007