KARACHI, May 12: The Karachi Stock Exchange released a notice on Friday to inform in detail, the members, the SECP and the Lahore and Islamabad stock exchanges about the important decisions taken by the board of directors of KSE in their meeting held on Thursday. These were listed as follows:
1) Introduction of KSE-30 Index based on Free-Float: A new KSE-30 Index based on free-float market capitalisation will be introduced with effect from July 1, 2006 subject to formal approval of the SECP. The new index will be implemented along with existing two indices, i.e. KSE All Share Index and KSE-100 Index. 2) Implementation of Unique Identification Number (UIN): In order to enhance transparency and to identify the trades done by each investor, the UIN system will be implemented effective from August 1, 2006. The UIN assigned to an investor would remain the same even if the investor trades through multiple brokers at one or more stock exchanges.
The National Clearing Company of Pakistan Limited (NCCPL) would provide the members a facility through NCSS terminals for registering the client ID issued by them against the client UIN no. (e.g. computerised NIC no. in case of individual) through a mapping table. This mapping table would be linked with the trading system of the three stock exchanges.
It would be mandatory for the members to enter the client ID issued by them at the time of input of trade order which will be verified by the system on the basis of pre-trade and in case of any invalid registration, the said trade order will be rejected.
As a first step towards implementation of UIN system, it has been decided that the members shall enter compulsorily with immediate effect their existing client codes while executing trades in Ready, Futures, CFS and provisional market. On non-compliance of the same, an appropriate action will be taken by the management.
3) Introduction of Cash-Settled Stock Futures: The cash-settled stock future contracts for 30, 60 and 90 days period will be introduced subject to approval of the relevant regulations by the SECP from July contracts, initially with one scrip, i.e. Pakistan Telecommunication Limited (PTCL) on test basis and then the number of scrip will be increased gradually. The existing deliverable future contracts will run parallel to the cash-settled stock future contracts until further instructions.
The KSE concluded by stating that presentation on each of the above subjects would be made to the members prior to their implementation.