BoD of KSE takes key decisions

RECORDER REPORT

KARACHI: The Karachi Stock Exchange (KSE) Board of Directors has taken some key decisions in its meeting held on November 29, 2011.

According to a KSE notice issued here on Wednesday, the KSE board of directors has approved revised TOR of Index Experts Committee of the Exchange.

In principle approval to the concept paper for creation of Small and Medium Enterprises (SMEs) board at KSE was accorded by the board for onward submission to the Securities and Exchange Commission of Pakistan (SECP).

Ratification of proposal on 'proposed margin relief to members' as deliberated by the authorized board members / management with the representation of SECP and submitted to the Commission for their further consideration.

Approval of the following new/revised regulations and regulator amendments, subject to approval of SECP:

i. New Regulations to be called as "Regulatory Monitoring and Compliance of Brokers", which will be submitted with the existing System Audit Regulations. (The draft regulations to be placed on KSE website to seek members' views, if any).

ii. Amendments in Market Making Regulations to allow relaxation in minimum equity requirement and enhanced sharing of transaction cost (Laga) by the Exchange with the market makers.

The board gave approval of Risk Management Gateway (RMG) being developed by the KSE IT Division.

Declaration of conflict of interest in matters to be deliberated by the Voluntary Delisting Committee by its members was suggested by the Board.

The proposal to allow an additional UIN to each brokerage house to specifically cater to rectify erroneous trades was approved by the Board.

In principle approval was granted for development of trading platform and system for governmental securities (T-Bills and PIBs) through KSE.  Making a representation to FBR for the appropriate treatment of tax on the income/profit being earned by the financier under Margin Financing, Margin Trading and Securities Lending and Borrowing was agreed by the Board.

The proposal of listing of TFCs on KSE, which are already listed on other stock exchanges, with lesser documentary requirement and payment of listing fee duly rationalised was approved by the Board, conditional upon all future debt securities being simultaneously listed on all stock exchanges.

The ratification of amendments suggested by SECP in Risk Management Regulations as previously approved by the Board in relation to allowing individual shareholder of a brokerage house to utilize his/her securities for meeting shortfall in the margin/MtM losses requirement of other UINs.