KARACHI, Dec 13: In respect of the order by the Sindh High Court on Saturday on a suit instituted by two stock brokerage firms, there appeared to be a confusion over its interpretation: Experts and brokers were split over the question whether the court had stayed the removal of the floor (resumption of normal functions) of the market from Monday or did the restraining order pertain to only the CFS-MK-II transactions?

A member on the board of directors of the Karachi Stock Exchange (KSE) said that a meeting of the board held on Saturday was told by their legal advisers that the stay prima-facie was on the CFS-MK II transactions only and the stock market could begin its normal function and removal of the floor from Monday.

The KSE board had nonetheless asked the Securities and Exchange Commission of Pakistan (SECP) for instructions, since it was the chief watchdog that had directed the three stock exchanges on Thursday, to remove the floor from Monday (Dec 15).

“We have been told to wait for a legal opinion till tomorrow (Sunday),” said the KSE director in respect of a follow up directive from the SECP.

He pointed out that the court order was in regard to KSE. Since the SECP instructions on Thursday applied to all the three stock exchanges in the country, there also was an ambiguity on whether the other two exchanges at Lahore and Islamabad could go on to remove the floor on Monday?

A flurry of activity was witnessed in board rooms of various stakeholders, including the Mutual Funds; the Financial Institutions and big brokerages.

Most stock brokers were waiting to see if the dust settles on Sunday or the bourse would be dragged to the courts.

Given the top legal brains hired by the two sides, everyone appeared to be worried over a long and dreary battle, in case the issue remained unresolved.