ISLAMABAD, March 1: The controversy between the stock brokers and Securities and Exchange Commission of Pakistan (SECP) subsided on Thursday after the former agreed to implement the client level netting system (CLN) by the deadline of March 5.

The decision was taken in a meeting held between the members of the board of Karachi Stock Exchange (KSE) led by managing director M A Lodhi, and SECP officials led by chairman Razi-ur-Rahman Khan here, the SECP announced late in the evening.

The meeting discussed all the issues pertaining to the capital market and agreed to resolve them in the best interest of the market.

The announcement stated that Mr. Rahman told the meeting that modalities were in place whereby margins relating to financial institutions trade will be paid directly to KSE.

The KSE team conveyed that implementation of CLN was fully in place and therefore, it was agreed that the same will be implemented from March 5 onwards — the deadline.

“It was also agreed that a mechanism will be developed to address the procedure of entitlement to bonus and right shares in the CFS market in a manner that there will be no adverse impact on the market,” the commission announced.

It stated that detailed discussions were also held with respect to risk management system and necessary measures were taken to streamline the system.

“The meeting ended with a vote of thanks by KSE board and members to the chairman SECP for resolving all issues amicably and with a positive and professional approach,” it added.