The Karachi Stock Exchange Limited’s reduction in amount of margin relief by KSE clearing house protection fund trust
Karachi, August 01, 2013 (PPI-OT): This is further to our Notice No. KSE/N-4939, KSE/N-5479 and KSE/N-2306 dated October 18, 2012, November 1, 2012 and April 23, 2013 respectively wherein the Trustees of the Clearing House Protection Fund Trust (CHPFT) provided the Bank Guarantee to the National Clearing Company (Clearing Company) on behalf of those Brokers who had submitted their undertakings to the Exchange on a prescribed format for availing Margin Relief of up to Rs.10 million effective from November 12, 2012.
As per understanding given by the Commission vide its letter No.SMD/SE/2(20)2012 dated July 27, 2012 and in line with the Board’s decisions in its meeting held on October 31, 2012 and subsequently through a Resolution by Circular No. 12 dated November 28, 2012 and as per decisions of the trustees of CHPFT dated November 1, 2012 and December 20, 2012, the CHPFT issued Bank Guarantee to the Clearing Company up to Rs.10 million for Broker subject to its gradual reductions by 1/3rd at the end of six (6) months and further reduction by 1/3rd at the end of 9 months with the following Margin Relief schedule:
1. Effective from Nov 12, 2012 maximum to Rs.10 million per Broker till May 11, 2013.
2. Effective from May 12, 2013 maximum to Rs. 6.67 million per Broker till Aug 11, 2013.
3. Effective from Aug 12, 2013 maximum to Rs .3.33 million per Broker till Nov 11, 2013.
Please note that in line with the above schedule, effective from August 12, 2013, maximum Margin Relief per Broker will be reduced to Rs. 3.33 million for those Brokers who already undertook to avail such Marginal Relief facility maximum to Rs. 6.67 million. Further all those Brokers who have not yet availed such facility may submit an Undertaking to the Exchange on their respective Letter Heads on the prescribed format for availing Marginal Relief maximum to Rs. 3.33 million till November 11, 2013.
For more information, contact:
Abbas Mirza/ General Manager
Operations, Customer Services and Investors Relations.
The Karachi Stock Exchange Limited
Tel: (92-21) 111-001122
Fax: (92-21) 3241 0825, (92-21) 3241 5136