KASB Securities Limited (KSL) was back in business yesterday after the Securities and Exchange Commission of Pakistan (SECP) lifted its suspension of trading facilities that was imposed on Nov 18.
The chief regulator said the step has been taken in response to the Karachi Stock Exchange’s (KSE) proposal to allow limited trading facilities to the KSL.
Market participants said that though the suspension has been lifted, the brokerage house was to operate in “strictly restricted, limited and controlled environment”, a fact SECP’s Commissioner for Securities Market Division, Zafar Abdullah, endorsed while talking to Dawn.
The SECP’s directive yesterday stated: “KSL to execute buy orders only against 100pc cash and sell orders only against pre-existing holding in CDS-subaccounts with KSL.”
Complying with those restrictions, the KASB Securities would be required to deposit 100pc cash, if net payable, and deliver 100pc securities on trade date, i.e. T+0, the regulator added.
Secondly, KSL to execute orders on behalf of non-broker clearing members of the National Clearing Company of Pakistan Limited (NCCPL) provided that such trades were affirmed within 60 minutes of execution so as to ensure transfer of settlement obligations to the institutions concerned.
Thirdly, KSL to execute trades on behalf of foreign institutional investors provided that such trades were affirmed by the respective custodian clearing members of the NCCPL within 24 hours of trade execution. The KSE was also ordered to appoint dedicated senior level official to monitor the daily activities of KSL.
