Karachi Stock Exchange (KSE) has notified the new list of Margin Eligible Securities acceptable by the exchange as collateral. According to a KSE notice issued here on Monday, the exchange has notified this new list in accordance with regulations governing risk management of the exchange with prior approval of the Securities and Exchange Commission of Pakistan (SECP).
Moreover, the SECP has approved units of CDC eligible open-end collective Investment Schemes Categorised as Money Market Schemes in accordance with the criteria prescribed by the SECP vide its circular No 7 dated March 6, 2009, acceptable as collateral against margin requirements, the list of which would be circulated within due course of time.
Further as required under the said regulations, the exchange is required to notify the said list at least 30 days in advance before effecting any change in the list of margin eligible securities. In view of this, the new list of margin eligible securities will be effective from August 15, 2011, KSE said. "Therefore, members are hereby requested to replace their securities deposited with the exchange which are not included in the revised list before August 13, 2011, failing which the exchange will not value such share for deposit against margins demand," it added.
The following are the margin eligible securities acceptable as collateral: Allied Bank Limited, Arif Habib Corporation Limited, Adamjee Insurance Company Limited, Askari Bank Limited, Azgard Nine Limited, Attock Petroleum Limited, Attock Refinery Limited, Bank Al Falah Limited, Bank Al Habib Limited, Bank of Punjab Limited, Byco Petroleum Limited, Clariant Pakistan Limited, Cherat Papersack Limited, Dawood Hercules Limited, DG Khan Cement Limited, Descon Oxychem Limited, Engro Corporation Limited, Engro Polymer Company Limited, Faysal Bank Limited, Fatima Fertiliser Company Limited, Fauji Fertiliser Bin Qasim Limited, Fauji Fertiliser Company Limited, Ghani Gases Limited, Habib Bank Limited, Hub Power Company Limited, ICI Pakistan Limited, International Industries Limited, Jahangir Siddiqui & Company Limited, Kot Addu Power Company Limited, Lotte Pak PTA Limited, Lucky Cement Limited, MCB Bank Limited, National Bank of Pakistan, Nishat (Chunian) Limited, Nishat Chunian Power Limited, Netsol Technologies Limited, Nishat Mills Limited, Nishat Power Limited, National Refinery Limited, Oil and Gas Development Company Limited, Pak Elektron Limited, Pak Reinsurance Limited, PICIC Growth Fund, Pakistan Oilfields Limited, Pakistan Petroleum Limited, Pakistan Refinery Limited, Pakistan State Oil Company Limited, PTCLA, Sui Northern Gas Pipeline Limited, Sitara Peroxide Limited, Sui Southern Gas Company Limited, Treet Corporation Limited and United Bank Limited.
The current list of banks which bank guarantee will be acceptable is as under: Allied Bank Limited, Askari Bank Limited, Bank Al Falah Limited, Bank Al Habib Limited, Bank Islami Pakistan Limited, The Bank of Khyber, Habib Bank Limited, Habib Metropolitan Bank Limited, JS Bank Limited, KASB Bank Limited, MCB Bank Limited, NIB Bank Limited, Summit Bank Limited, Soneri Bank Limited and United Bank Limited.