LAHORE, April 6: Margin financing is likely to be introduced as the mode of trade in the stock market by middle of this year, said the chairman, Lahore Stock Exchange (LSE), Syed Asim Zafar. Margin financing, when introduced, will replace the badla trading.
Talking to APP here on Tuesday, the LSE chief expressed the hope that the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) would finalize the rules for margin financing by that time.
About proposals for the coming federal budget, he said that LSE, in its pre-budget proposals for the year 2004-05, had suggested the waiver of 10 per cent withholding tax on dividend income.
He said that provision of incentives to companies listed on the stock exchanges could encourage other companies to raise their funds by floating their shares in the stock market, in stead of going for bank loans.
Simplification of tax procedures and extension in the exemption period on capital gains from investment in shares to five years from one year, could help give more depth and breadth to the stock market, he observed. -APP
