The Karachi Stock Exchange (KSE) has sent a communiqué to the Securities Exchange Commission of Pakistan (SECP), seeking permission to reduce the margin on trade, making it less expensive.
According to sources, the KSE after getting directives from the Advisor to the Prime Minister on Finance, Dr Salman Shah, who concluded meeting with all stakeholders aimed to providing the much-needed liquidity to the stock market, has urged the SECP to reduce the margin. At present, the double margin has to go as to the banks and stock exchange keep the margins, making the business expensive.
The dealers were of the view that the margin ranged from 25 to 40 percent, increasing the cost of financing to a great extent.
The Exchange in its letter to the stock market regulator has asked it to do away the condition, charging solitary margin over the trades. "The decision is expected to be announced by Saturday or Monday", said sources close to the capital market.