KARACHI, Sept 20: The Securities & Exchange Commission of Pakistan (SECP) on Wednesday revised dates concerning ban on in-house badla and restart of short sale in futures contracts.
Under the revised schedule, in-house badla would be abolished from October 30 and short sale allowed from the November futures contract.
On September 11, the SECP had proposed raising the limit of Continuous Funding System (CFS) for the Karachi Stock Exchange (KSE) to Rs55 billion from Rs25 billion.
At the same time, the chief regulator had announced clamping a ban on in-house badla, which refers to un-recorded amount of leveraged financing by brokers to their clients.
The two measures were to be implemented from October 2. No timeframe was announced for restart of short sales in futures contracts. But a sudden ban on in-house badla became a point of concern for investors and stock brokers, resulting in a drop in equity values and a very low turnover of shares. Many market participants had demanded a gradual phase-out of the latter.
