Rs.20 Billion Rescue Fund
October 23, 2008The government has established a Rs 20 billion open-end fund to be injected into the stock market for providing a soft landing to the market on its opening on October 27, 2008. The government has also given Rs 30 billion guarantee to foreign investors, who would avail put options. The Securities and Exchange Commission of Pakistan (SECP) on Wednesday gave formal approval for establishing the required fund. These decisions were taken in a meeting between the Securities and Exchange Commission of Pakistan (SECP) and the Board of Directors of the three stock exchanges ie KSE, LSE and ISE, under the chairmanship of Razi-ur-Rahman Khan Chairman SECP…The NIT is in the process of finalising the finer details for smooth operation of the said Fund. The Fund is expected to provide a soft landing to the market on its opening on October 27, 2008. The fund will invest in seven state-owned entities namely Oil and Gas Development Company Limited, Kot Addu Power Company Limited, Pakistan Petroleum Limited, Sui Southern Gas Company Limited, Sui Northern Gas Pipelines Limited, Pakistan State Oil Company Limited and National Bank of Pakistan. In addition to the market operation of the fund, the fund is being provided with a Rs 30 billion GOP guarantee to enable it to write put options on the seven state-owned entities detailed above…Aaj News
