March, 28 2005	Monday	17 Safar 1426

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KARACHI, March 27: The preferred method of financing in the stock market will henceforth be margin finance, according to a decision taken at a meeting of the Securities and Exchange Commission of Pakistan (SECP), leading market participants and financiers and the Karachi Stock Exchange (KSE) management. According to a KSE press release, the meeting was held on Saturday to review the present market situation and to ensure smooth settlement of the March futures contracts on Wednesday.

The meeting’s decision, the press release said, was based on three principles — honouring of contracts, maintaining the integrity of the system and protection of small investors by ensuring the provision of financing to market participants.

The KSE management and representatives of market participants, the press release added, held a meeting with various banks and “were able to get sufficient commitments to meet the financing need through margin finance supplemented by Badla finance”.—APP