KARACHI, Dec 1: An informal meeting of the members of the Karachi Stock Exchange was held on Monday where the participants were unanimous in their views that the market funds should be put in place and the ‘floor’ removed.

According to one member who attended the proceedings, a strong fraternity of 120 brokers was present. The member directors and the managing director of the KSE informed the participants of the deliberations at the various meetings of the board.

The board had proposed to the government the date of Dec 8, Monday next, for removal of the floor and the return of the market to its normal function. That was, of course, subject to availability of the long-awaited market support fund.

It was said that two of the institutions had committed their share of Rs5 billion to the Rs20 billion market support fund, while EOBI had committed Rs2.5 billion. The member said that 17 banks had committed the remaining Rs7.5 billion.

A stock broker said that the general feeling was that the initiative now rested with the government and the apex regulator. But the message to the KSE from the other side was: “You have created this mess by imposing the floor, now don’t add to the spoils by seeking its removal at an unfavourable moment.”

This broker thought that for all the sound and fury, the month of December is likely to pass on peacefully. The Eid holidays ahead were a reason enough for the diversion of investor attention to festivities.

When asked privately, several market participants also shook their heads on the possibility of Dec 8 as date for removal of the floor, which would be almost 100 days since it was placed under the index on Aug 28. Many thought that the government might wait for the IMF clearance before signaling a launch of the fund and removal of the floor.

“And that could be a month away until the eve of the New Year,” said one member who was eyeing one of the five seats on the board of directors for the year 2009. Elections would be held on Tuesday.