ISLAMABAD, Jan 25: The Securities and Exchange Commission of Pakistan (SECP) has constituted CFS Mk II implementation committee. The committee is chaired by Shaukat Tareen and comprise representatives of the three stock exchanges, the SECP, Mutual Funds Association of Pakistan, stock brokers and bankers, an official notification issued here on Thursday said.
The committee has been set up to address matters relating to smooth and early implementation of CFS Mk II.
In order to facilitate transparent and efficient financing for the market, the SECP earlier last year proposed authorisation of direct leverage finance in the form of CFS Mk II by eligible brokers, banks and Non-banking Finance Institutions (NBFIs).
With a purpose of providing a level-playing field for the three stock exchanges a centralised CFS Mk II will be developed at the National Clearing Company of Pakistan (NCCPL). This arrangement would benefit investors as well as financiers, who would not need to acquire authorised financier's status of each stock exchange to extend financing and hence financiers would lend money to broker finances at any stock exchange in a geographically neutral manner.
