The Securities Exchange Commission of Pakistan (SECP) has extended the date of phasing out of CFS from August 31 to December 31, 2006. The date has been extended for the third time. But rumours are rife that the SECP and KSE are studying the rules for CFS II and altering some of the measures taken by the regulator.
However, a learned Karachi Stock Exchange (KSE) broker said that board of directors has discussed the issue at length and but so far has not forwarded any concrete proposals on CFS II.
The stock market regulator following the last year's crash had limited the CFS facility to Rs 18 billion, however, in August last year it was extended to Rs 25 billion, which was later amended to Rs 24.5 billion.
At the close of the market on Friday, the financing under CFS on the KSE showed further decline as demand for funds did not pick up, owing to steep decline in share values. According to analysts at a leading research house, the total financing was well below the official ceiling of Rs 24.5 billion at Rs 20.4 billion after opening around Rs 23.8 billion.