Cap on badla rates

Published March 13, 2003

KARACHI, March 12: The board of directors of the Karachi Stock Exchange on Wednesday put a cap of 18 per cent on the maximum financing rates of carryover transactions on the 30 most liquid scrips in a bid to regulate the badla market and save retailers from undue losses and manipulation.

“The KSE is working together with the Securities and Exchange Commission of Pakistan (SECP) to phase out the badla business with margin financing to check speculative activity and ensure stability to save brokers from a possible default on account of clearing. The cap on all other scrips will be at the maximum 24 per cent.

“The media has pegged the market downturn after Jan 15 on badla crisis,” the Managing Director of the KSE Moin M. Fudda said adding “investors are advised not to overstretch themselves where they may need large carryover financing.”

Opinion

Editorial

Doctor attacked
09 Jun, 2026

Doctor attacked

AN act of reprehensible violence has shaken the medical community. On Saturday, an employee of the Provincial Civil...
AJK flare-up
Updated 09 Jun, 2026

AJK flare-up

The situation started deteriorating after a trader affiliated with the JAAC was reportedly shot in an altercation with law-enforcers.
Fault lines
09 Jun, 2026

Fault lines

THE April 8 ceasefire that halted hostilities between Israel and Iran has encountered its most serious test yet....
Soft on traders
08 Jun, 2026

Soft on traders

THE Fixed Tax Asaan Scheme for traders with an annual turnover of up to Rs200m has been designed as a ‘pragmatic...
Ceasefire in name
Updated 08 Jun, 2026

Ceasefire in name

Both sides accuse the other of violating the truce that was supposed to halt the conflict in April, yet neither appears willing to abandon negotiations altogether.
Damaged childhoods
08 Jun, 2026

Damaged childhoods

CHILD abuse is so prevalent that the UN ranked Pakistan as the least safe country for children. Even so, more than...