01 February 2004	Sunday	09 Zilhaj 1424

KARACHI, Jan 31: The Governing Board of Directors of the KSE has decided to introduce the concept of maximum limits for acceptance of shares of approved securities for the purpose of deposits against exposures under the "Regulations Governing Futures Contract."

As per a notice of the KSE, issued here on Friday, the decision was taken in adjourned meeting of the board held here on Thursday in order to strengthen the risk management system under Futures Counter.

Accordingly, the maximum number of shares, of the companies approved for the purpose, from a member shall be accepted up to 40 per cent of their average daily turnover or Rs10 million, whichever is higher, the board decided.

The limit of 40pc of average daily turnover of approved securities would now be based on the six-monthly "List of Approved Companies Acceptable for Deposits against Exposures and Losses" as applicable under Ready Counter.

This would be, however, implemented after incorporating necessary functionality in the system and approval of the same by the Securities and Exchange Commission of Pakistan (SECP), the KSE clarified in the notice.-APP