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December 28, 2008
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Sunday
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Zilhaj 29, 1429
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Held-up KSE funds: consent letters to be signed today
By Dilawar Hussain
KARACHI, Dec 27: The square-up scheme of the stuck-up Rs9 billion in the Continuous Funding System (CFS) MK II of the Karachi Stock Exchange took another step on Saturday as the financiers (lenders) and the financees (borrowers) agreed to sign the consent letters latest by 3pm on Sunday, sources told Dawn.
The consent letters along with the proposed CFS MK II square-up scheme agreed among the authorised financiers and financees were dispatched by the National Clearing Company of Pakistan Limited, managers of the CFS, on Friday, a circular by the NCCPL stated.
“NCCPL offices at all locations shall remain open on Dec 28, 2008 to receive the said consent letters,” the NCCPL stated, but absolved itself of any liability by saying that the scheme was being implemented with the consent of the authorised financiers and financees and that the NCCPL was only acting as CFS Mk-II facilitation agent for implementation of the scheme without incurring any liability.
Several meetings were held on Saturday at the residence of Securities and Commission of Pakistan chairman Razi-ur-Rehman Khan, in which the financiers; the financees; mutual funds, banks and other stakeholders participated.
The sources further said that the agreement stipulated that settlement of the outstanding sum of Rs9 billion in CFS would take place on Wednesday (Dec 31). And the troubled stockbrokers, who generate loss, would be allowed to settle dues by Jan 5.
It was decided that those financiers and financees, who did not wish to participate in the scheme, would be allowed to carry on in the normal market trading, the sources added.
It was pointed out that the CFS stuck-up amount, which had been at the heart of the stock market slump by nearly 25 per cent since the removal of the floor, was resolved by the committee formed on Wednesday by Adviser to the Prime Minister on Finance Shaukat Tarin within three days.
The committee comprised various stakeholders and was chaired by Najam Ali, chairman of the Mutual Fund Association of Pakistan.
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