The board of directors of Karachi Stock Exchange on Monday approved the concept paper of margin trading. The KSE board meeting held here deliberated at length the concept paper of the proposed leverage product. The concept paper was finalised by the independent committee constituted by the Securities and Exchange Commission of Pakistan (SECP).
The SECP had sent this concept paper to all three stock exchanges and National Clearing Company of Pakistan Limited (NCCPL) for their approval. After approval by all stock exchanges and NCCPL, the concept paper would be sent back to the SECP for further process of approvals. The proposed leverage product would be introduced at the stock exchanges after final approval.
The SECP had announced that the concept of 'Margin Trading' once endorsed by the KSE Board of Directors and NCCPL and approved by the SECP would need to be incorporated into the draft Securities (Margin Financing, Securities Lending and Borrowing and Pledging) Rules, 2010. These revised rules will then be submitted to the federal government for final approval.
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