The funding of financial institutions under CFS Mk-II at Karachi Stock Exchange (KSE) should be through brokers, instead of direct funding. This proposal was floated by KSE members in a CFS Mk-II Committee meeting held here on Monday. Shaukat Tareen, Chairman, KSE, chaired the meeting, while Securities and Exchange Commission of Pakistan (SECP) Chairman Razi-ur-Rehman also attended the meeting.
The directors and members of KSE were also present in the meeting and gave their proposals for the implementation of CFS Mk-II. The meeting discussed various issues regarding implementation of this new proposed channel for liquidity at Karachi Stock Exchange (KSE). A source present at the meeting told Business Recorder that the members suggested that the funding by financial institutions should only be made through brokers, instead of proposal of their direct funding, at the KSE for CFS Mk-II.
In this regard, the members proposed that the financial institutions would be provided trading terminal of the brokers. The members proposed that financial institutions would use brokers' code for funding under CFS Mk-II.
"A detailed discussion was made during the meeting in which the members gave their proposals to the SECP for implementation of this proposed channel of liquidity at the Karachi Stock Exchange and now the regulator will decide for its implement in due course of time", a member said.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that early implementation of this new proposed channel for liquidity would not only allow the retailers to trade freely, it would also allow the leading players to dare the inflow of stocks that makes its way to the local bourses after conversion.
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