20000207

KSE to keep hall

open in evenings

for T+1-based

companies

RECORDER REPORT

KARACHI: The Karachi Stock Exchange (KSE) has decided to keep the trading hall open in the evenings prior to the weekly clearing day of companies traded on T+1 basis.

The T+1 basis is the system in which a buyer and seller can deal on the first day and settle the shares order in the following sessions.

According to a notice issued to all members of the KSE, the management in order to facilitate the sellers and buyers of shares of such companies, which are placed on T+1 basis in pursuance to Rule of the Ready Delivery Contracts, to carry over their positions from weekly clearing to T+1, the trading hall would be open for the purpose from 4.30 p.m. to 5.30 p.m. on the days prior to the weekly clearing day of such company.

The system further revealed that the buyers would have to pay first to clearing house latest by 11.30 a.m. the due payments prior to receiving the delivery.

The deliveries would take place through the CDC account of the Exchange as per the delivery orders issued by the clearing house on settlement day. The sellers would have no choice of bank and the clearing house would make payments through the bank from which the buyer member would make the payment.

In case of non-delivery of shares by the sellers the clearing house would square up the shares at 12.00 noon on the next day of the settlement without any notice to the seller. Loan account transactions would not be allowed.

Any two contracting members, if they jointly request as per annexed proforma, would be allowed to carry over their transactions from weekly clearing to T+1 clearing. Carry over transactions from one T+1 clearing would not be allowed.