The board of directors of the Karachi Stock Exchange (KSE) has once again proposed the enhancement of CFS upper cap from existing Rs 55 billion level to another higher limit to help meet investors' needs in a fast growing market.
In the KSE board meeting, held here on Monday, the directors decided that they should discuss this matter again with the Securities and Exchange Commission of Pakistan (SECP) chairman, requesting him to reconsider his decision.The SECP chief had earlier refused to enhance the upper limit of this mode of financing at the Karachi share market.
Sources told Business Recorder that it was decided that KSE Chairman Shaukat Tarin with two directors would meet the SECP chairman next week to discuss this issue as the other directors were scheduled to leave for London in the next few days to attend the Pakistan Equity Market Day to be held there on July 6.
They will request the regulator for relaxation of enhancement for this mode of financing.
The share market is growing at a fast pace while making a new record every other day as the KSE-100 index closed at its all-time high level of 13,772 at FY07-end, while it has breached through 13,900 historic level on the first trading session of the new fiscal year. The market capitalisation is also reached its all-time high level of Rs 4.066 trillion.
The KSE board was of the view that the enhancement of CFS upper cap was necessary at this level because the KSE had reached its highest ever levels. The investors need more financing to invest at this level as they are facing a liquidity crunch. The board also discussed, among others, the matter of implementation of CFS Mk-II.
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