COT curtain will be finally drawn on August 26, 2005
Islamabad – April 21, 2005:- The issues relating to carry-over-trade (COT) were resolved on Thursday when the Minister of State for Finance, Mr. Omer Ayub Khan accompanied by the Chairman, Securities & Exchange Commission of Pakistan, Dr. Tariq Hassan and Commissioner (SM), Mr. Shahid Ghaffar met the Board of Directors of the Karachi Stock Exchange at SECP Regional office in Karachi.
The Minister in his opening address said that the government under the leadership of President General Pervez Musharaf and Prime Minister Shaukat Aziz will continue to take steps towards providing enabling business environment and as a result all the macro-economic indicators are positive which is reflected by the growing GDP rate. He particularly referred to the capital market reforms which have been successfully carried out over the last five years and emphasised the need for the expeditious implementation of second generation reform in the capital market. He lauded the role of Dr. Tariq Hassan, Chairman-SECP for successfully implementing capital market reform agenda.
With regard to current market situation, the following decisions were taken during the meeting:
The freezing date of April 29, 2005 for COT position stands withdrawn pursuant to the request made by the Board, management and members of the KSE.
The extended date for COT phasing out shall be August 26, 2005 instead of August 3, 2005 as notified earlier.
The weekly reduction of outstanding COT positions shall be 8.25% instead of 12.5% w.e.f. June 8, 2005.
The revised list of eligible securities for May 2005 future contracts shall be announced this evening.
The Board of Directors of the Karachi Stock Exchange and present on the occasion, former chairman KSE Board, Mr. Arif Habib on behalf of the brokers community at large, assured the SECP and Government of Pakistan that there will be no further request for COT extension and COT will no longer be dependent on margin finance, however, all parties will make concerted efforts to promote margin finance.
The Honourable Minister reposed continued confidence of Government of Pakistan in the Chairman SECP and Commissioner Securities Market.
The KSE Board has greatly appreciated the visit of Honourable Minister and have reaffirmed their full support to the Chairman SECP in implementing the 2nd generation capital market reforms.
