KARACHI : The board of directors of Karachi Stock Exchange (KSE) has approved the proposal to re-launch the deliverable future contracts in 10 eligible scrips, with VAR based cash margin. The KSE board meeting, held here on Tuesday, reviewed the proposal to re-launch the future product, which was discontinued since April 8, 2009. The board also reviewed the matter of five suspended KSE members.
According to sources, the KSE board approved the proposal to re-launch the deliverable future contracts in 10 scrips. The eligible scrips are Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), Pakistan State Oil (PSO), National Bank of Pakistan (NBP), MCB Bank (MCB), United Bank Limited (UBL), Hub Power Company (Hubco), Fauji Fertiliser Company (FFC) and Engro Chemicals.
The proposal to re-launch the deliverable future contracts, approved by the KSE board, would be sent to the apex regulator--Securities and Exchange Commission of Pakistan (SECP)--for final approval. The product would be re-introduced at the share market after approval from SECP, sources said. About the margins, sources said that VAR based cash margins would be required for the proposed product of deliverable future contracts.
They said that the issue of five suspended KSE members was also discussed in the meeting. The meeting gave a deadline of August 12, 2009 to the suspended members to settle the claims of their investors. The meeting decided that the membership cards would be expelled after the deadline if any suspended member failed to settle the claims of investors/clients. In this regard, a committee has been constituted that would look into the issue and to find out the ways to settle the issue.
The meeting agreed that the existing amount of Rs 10 million from Investors Protection Fund in case of any default should be increased to Rs 25 million so that the investors could be given maximum amount of their claims. The meeting decided to send the proposal to SECP for approval.
Copyright Business Recorder, 2009
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