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KSE to flash daily share prices on website

HARIS ZAMIR

KARACHI: The Karachi Stock Exchange (KSE) has planned to flash daily share prices on its website from the middle of next month while the government intends to announce Substantial Acquisition of shares and take-over laws by end this month.

Arif Habib, Chairman, KSE said that to improve corporate behaviour, ensure transparency of transactions leading to control and protect the interest of minority shareholders, the exchange with the help of Securities Exchange Commission of Pakistan have introduced several measures.

The main aim of the exchange is to build up the confidence of local as well as foreign investors. To make the daily transactions more transparent and to give more access to general public and investors, the KSE has designed new mechanism through which prices of every share traded would be available on the Internet, Habib said.

He pointed out that it plans to implement National Clearing System within year 2000 with features like T+3, rollover, CNS integrated with CDS having securities lending and borrowing facility.

The chairman said that to improve corporate governance and financially weak companies and safe guard the interest of minority shareholders, the exchange has proposed Substantial Acquisition of shares and take-over law to the government. The authorities has set March 31,2000 as the target date for its enactment.

To broaden the network of trading and increase the interest investors other than the traditional traders, the KSE plans to introduce Internet routed trading through the web site of the members of the KSE by the end of this year.

The deliver and payment facility shall be provided soon through the CDS system.

The work in progress to link Central Depository Company to be linked with the other international depositories of the region. While suitable drafts and amendments have been chalked out and would be incorporated soon in Rules and Regulations of the Exchange to cater the need and demand of future listings.

Habib said that soon the canvas of the stock exchange would be broaden and investors have more companies to invest as the government plans to unload the shares of state-run companies through stock market.

He added that a three phase privatisation programme has been announced leading to: restructuring the board of public sector companies increasing private sector representation, listing of 100 percent government companies at the stock exchanges and transfer of management of public sector companies to strategic investors.

"Good omen for the market as deadlock of over two years has been broken as two new companies would be listed at the exchange," he added. He hoped that with the commitment of the government to put the economy back on trail the profits of the companies will revive and shareholders would get dividends.

He said that number of steps taken by the government is in right direction. The government has reduced the interest rates on national saving schemes, which lead to cut interest rates charged by the banks. The good cotton production helped revive the textile sector, which was dormant for over two to three years and imposition of 10 percent penalty if a company did not pay dividends equivalent to 40 percent of the earnings. These factors along with assurance of the government of consistent policy and intention to revive the tariff dispute with the private power producers rehabilitated the confidence. The market since October 12, 1999 recorded a growth of over 60 percent to 2000 points.