KSE clears 10pc of MTS blocked shares for SLB financiers

Karachi Stock Exchange (KSE) has decided to ensure the availability of 10 per cent of Margin Trading System blocked shares to facilitate the financiers of the Securities Lending and Borrowing (SLB) market. Also, the Exchange is planning to allow a rollover facility to the investors in Deliverable Futures Market (DFM) through a separate window during the overlapping period. Subject to SECP’s formal approval and development of operational modalities by the Exchange, the decisions, which were made by Development and Trading Affairs Committee (DTAC) of the KSE, were approved by KSE Board of Directors in its Monday’s meeting. KSE Board has also decided to collect service charges from the non-member occupants of the offices in the KSE premises to meet maintenance and administrative expenses of the Exchange.
The charges, being levied by the Exchange on the non-members occupants would be applied at the same rate as being charged to the members. “We pay around Rs4,000 to Rs5,000 per month as maintenance charges to the Exchange,” a director told Profit. The front regulator also cleared amendments in the regulations governing Deliverable Futures Contracts and cash-settled futures contracts to harmonise the same with relevant criteria along with changes in uniform criteria for selection of securities for futures market at KSE.
The Board agreed upon following recommendations of the DTAC:
1) Mechanism of settlement of negotiated deals/off-market transactions through NCCPL with certain terms and conditions.
2) Availability of 10 per cent of MTS blocked shares to financiers for the purpose of lending through SLB market.
3) Allowing rollover facility in Deliverable Futures Market (DFM) through a separate window during overlapping period, subject to the mutual consent of parties.
KSE Board also approved the (un-audited) condensed interim financial statements of the Exchange along with the Directors’ Review for the period ended December 31 last year.
The board also decided to convene a meeting of the Tax Committee to submit tax proposals for the tax year 2012-13 to SECP.
The meeting would develop and finalise tax proposals based on the feedback received from members and listed companies. To continue the existing electricity tariff for applying on members till June 30, 2012 and review the same thereafter, was another decision that the board took on Monday.