20000403

KSE revises

exemption limit,

exposure deposits,

payment rules

RECORDER REPORT

KARACHI: The Karachi Stock Exchange (KSE) has increased the exemption limit of the members to Rs 50 million from Rs 30 million, but members have to deposit Rs 20 million for loss exposure.

According to information, available to Business Recorder, the Governing Board of Directors of the KSE in a recent meeting reviewed the existing procedure of exposure deposits, trading through Karachi Automated Trading System (KATS) as well as payment by members on settlement days. They made these changes to reduce the extent of losses, if borne by members, and safeguard the interest of shareholders dealing with them.

The existing basic exemption limit for exposure deposits has been enhanced from Rs 30 million to Rs 50 million. The loss limit shall remain unchanged. However, deposits against loss exposure over Rs 20 million shall be deposited immediately.

The revised slab of exposure deposits for members are: The members have to deposit nothing if they are using the first stage of exposure limit which is, trading up to Rs 50 million.

However, members trading over Rs 50 million to Rs 100 million have to deposit 15 percent of the amount exceeding Rs 50 million. In the third category, for transactions over Rs 100 million and up to Rs 200 million, members have to deposit Rs 7.5 million plus 25 percent of the amount exceeding Rs 100 million. The last slab showed that members trading over Rs 200 million have to deposit Rs 32.5 million plus 30 percent of the amount exceeding Rs 200 million.

The maximum quantity limit in one order through KATS has been enhanced to 500,000 shares and Rs 25 million in terms of amount. The Clearing House shall receive payments from members on settlement days up to 11.30 a.m. as per Rules and Regulations of the Exchange. If any member fails to make the payment to Clearing House by 11.30 a.m. a final notice will be issued requiring the concerned member to pay the same before 12.30 p.m. positively, failing which their KATS terminal would be switched off at 12.30 p.m. without any further notice. The name(s) of the member(s) whose terminal are switched off shall be also announced immediately.

The carry over transactions through KATS on last day of clearing (normally on Fridays) shall be up to 7.30 p.m.