This decision has been taken on the recommendation of Karachi Stock Exchange (KSE), according to statement issued by SECP.
The SECP had stopped the trading facilities of KASB Securities Limited (KSL) at the KSE and Pakistan Mercantile Exchange Ltd (PMEX) in November 18, 2014.
However, the SECP has instructed KSE to ensure following restriction as preemptive measures while opening KSL trading facilities.
In the ready market, the KSL can execute buy order against at least 50% cash deposit and sell orders against at least 50% pre-existing holding in CDS sub-accounts maintained with KSL.
In order to comply with these restrictions, KSL would be required to deposit 50% cash, if net-payable and deliver 50% securities on Trade Date.
Moreover, trades executed on behalf of the non-broker clearing member (NBCM) clients' shall be affirmed not later than one hour before closure of market.
KSL may also be allowed to trade in the Deliverable Futures Market only on behalf of its clients and no proprietary exposure will be allowed in this segment.
KSL shall submit to KSE weekly reconciliation of clients cash balances as per back office record with the designated clients' accounts available in their banks.