Karachi Stock Exchange to allow securities as margins in Margin Trading System and Futures

Karachi: The Board of Directors of Karachi Stock Exchange (KSE) has decided to allow securities as margins in Margin Trading System (MTS) and Futures.

According to Alfalah Securities Limited, the decision has been taken in order to enhance trading activity at the exchange. The decision is subject to approval of the Securities and Exchange Commission of Pakistan (SECP). Presently only cash margins are accepted in the MTS and Futures.

Moreover, following other decisions were also taken but remain subject to SECP approval:

•Regulations Governing Risk Management to allow placing of circuit breakers on first Trading Day of unpaid Right Allotment Letter and newly listed securities on Ready Market.
•Regulations for Short Selling to allow short selling without uptick rule subject to average turnover limits.
•Listing Regulations to allow forfeiture of application money paid by sponsors, in case of withdrawal of voluntary delisting application.
•Regulations with respect to options trading.
•Approval of addition of mandatory settlement field in Off-Market Reporting Interface on NCHS.

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