KARACHI (May 30 2007): The Securities and Exchange Commission of Pakistan (SECP) has announced reduction in basic deposit from Rs 500,000 to Rs 250,000 payable by a broker for entering into Cash Settled Futures Contracts and reduction in cash deposit percentage, to 40 percent of the margins payable on exposure in the CSF market.

In a letter sent to the Karachi Stock Exchange (KSE) here on Tuesday, the regulator said that the amendments in CSF were made based on the proposal of the KSE board of directors.

The commission accepted the KSE board's proposals for amendments in Cash Settled Futures Contracts (CSF) regulations and the decision was taken for the purpose of making CSF attractive for trading. After reviewing the proposals of the board of directors of KSE, the commission with a view to making the CSF Market, a commercially viable product and facilitating the market participants in the CSF markets, accepted the proposals of the exchange, the regulator said.

Copyright Business Recorder, 2007