May 3, 2006	Wednesday	Rabi-us-Sani 4, 1427

ISLAMABAD, May 2: The Securities and Exchange Commission of Pakistan (SECP) is currently in the process of discussion with banks and market participants on a new product to replace the existing Continuous Funding System (CFS).

The proposal was presented to the financial institutions in a meeting on Saturday and was being considered by them and the State Bank, stated an official announcement issued here on Tuesday.

It said the SECP was also reviewing risk management practices at the stock exchanges and various proposals floated by the market participants were under active consideration.

The proposal if accepted by all stakeholders would result in the removal of the current CFS cap and improved liquidity. “The margin financing proposal currently being considered by the Tareen Committee, when developed, would also play an important role in the development of the market,” the announcement stated.

The CFS extended to the end of this month would be reviewed by the SECP. “The press release is being issued to provide clarity to the public and avoid undue speculation,” it added.