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Ishrat calls upon KSE to broaden industrial ownership base

ANWAR RAJANI

KARACHI: The State Bank Governor, Dr Ishrat Hussain, on Thursday called upon the Karachi Stock Exchange (KSE) authorities to broaden the base of industrial ownership through the establishment of branch offices of the KSE members all over the country.

This, the SBP governor said, will improve the investment climate and serve the interest of small investors.

The governor held a closed-door meeting with the KSE board of directors and the office bearers at the exchange premises for about an hour.

In October last, the SBP had issued a circular that no lending would be allowed against stocks and shares unless these shares were registered with the Central Depository Company (CDC). This policy, the SBP governor said, will continue. Those who have already borrowed were given 180 days either to join the CDC or adjust their borrowings.

Market sources were of the view that this will facilitate induction of all the shares listed on the Exchange into the CDC.

The SBP governor is also reported to have urged the KSE that informal economy should be brought into the formal sphere, which means that it should be documented.

A question was put in the meeting to the SBP governor about the delay in solution to problems of Independent Power Producers (IPPs). He replied that all the problems are solved gradually and expressed the hope that there would be a solution to all these issues in the near future. He said that Hubco issue would also be solved by the end of this month.

Earlier, KSE President Arif Habib presented an address of welcome and said that the management had taken over the affairs of the stock market during difficult days. The SBP governor appreciated the work being done by the Karachi Stock Exchange.