9,643
October 6, 2009
News : The Board of Directors of Karachi Stock Exchange (KSE) has developed a new leverage product, called Margin Trading System (MTS), and has sent its concept paper to the apex regulator, the Securities & Exchange Commission of Pakistan (SECP), for approval…The Margin Trading System that is similar to CFS MK-II, will be run by KSE itself and financers in this system could be any one of financially sound companies or individuals. Financers may include Non-Banking Financial Companies (NBFCs), banks, mutual funds, brokers themselves, any financially sound individuals and et cetera.
The two major differences between formerly suspended CFS MK-II and newly developed Margin Trading System are that (1) in the newly proposed product to SECP, the borrower would pay 25 per cent of the total value of the shares purchased (called margin) and rest of 75 per cent financing would be provided to borrower through Margin Trading System. While in CFS MK-II, no margins were collected from the buyers, (2) In new system, the liquidity would be arranged first and then the shares would be purchased to pledge while in CFS MK-II shares were first purchased and then the financing was arranged for, a Director of KSE explained… The News
Market Low : 9,479.77 High : 9,672.89
Market Close : 9,643.11 — 155.16 points up
