March 13, 2003	Thursday	Muharram 9, 1424

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.”