ISLAMABAD, Sept 28: At the request of Karachi Stock Exchange, the Securities and Exchange Commission of Pakistan has revised the implementation schedule of the risk management measures to be taken by the KSE.

According to the revised schedules, all shares financed under current continuous funding system (CFS) the procedures shall be held in ‘blocked account’ with the CDC from October 9.

All outstanding CFS trades, which are not kept in blocked account, shall be forced released on November 3.

The SECP announced the decision on Thursday night after a KSE management team led by managing director M.A. Lodhi had extensive discussions with SECP Chairman Raziur Rehman, commissioner securities market and other officials on various implementation issues with respect to risk management measures announced by the SECP in its letter dated September 13.

The KSE management requested further time for an orderly implementation of the risk management measures and for a smooth transition to the new system.

The commission decided that from November 6, the following new netting regime (except for client-level netting which shall be implemented from February 1, 2007) will be implemented.

From the same date, all in-house badla will be banned, while CFS Cap shall be enhanced as follows: Rs30bn on November 6, 2006, Rs 37bn on November 13, Rs 45bn on November 20, and Rs 55bn on November 27.

Similarly, special margins shall be based on 26 weeks moving average price and shall be applied in the following phases: 50 per cent of special margin shall be collected from November 6, 75 per cent from February 5, 2007 and 100 per cent from June 4, 2007.