Failed coup widens gulf between bourse, SECP

The issue of the removal of MA Lodhi, Managing Director of Karachi Stock Exchange (KSE) that ended up with his hard victory, has once again raised the question of transparency at the local bourse and sparked the tension between the SECP nominated non-members directors and KSE elected member directors on board.

The allegations that the Securities and Exchange Commission of Pakistan (SECP) nominated directors pinned on MD was that he was not performing his duties efficiently. They explained that the sitting MD earlier failed to manage the Callmate Telips Telecard Limited (CTTL) crisis that took place a couple of months back. It was not for the first time the issue like CTTL emerged at the local bourse, they explained.

KSE Notice: Implementation of Risk Management System (RMS)

KSE Managemenet has issued a notice for implementation of Risk Management system (RMS). It lists the changes identified in RMS as approved by the KSE Board of Directors and SECP.

New risk management measures

The stock market went down last week, but not due to changes in the margins regime that seems to have taken the back seat. This article is about the new risk management measures, which are likely to haunt the market after some time if not in the immediate future.

Financiers, brokers enjoying win-win position

One of the simplest characteristics of the bourses all across the globe is that some investors make smart profits while others lose money in the speculative equity markets. But, there are some permanent profit-makers i.e. brokers and financiers who are always in a win-win position whether the markets are rising or falling.

The position of the financiers and brokers would become more secure than ever thanks to the SECP’s recently introduced revised Risk Management System (RMS) that was otherwise generally believed to protect the interests of investors, leading analysts observed.

KSE wants Revised Risk Management implemented in phases

The Karachi Stock Exchange (KSE) would recommend Securities and Exchange Commission of Pakistan (SECP) to implement revised Risk Management System (RMS) gradually in various phases instead of implementing it fully and finally on November 06, 2006.

This was stated by Muhammad Yaqoob Memon, Deputy Managing Director KSE while responding to a question after a press briefing on ‘revised RMS’ here on Wednesday.

The KSE management would put forward this recommendation to SECP at a meeting to be held between the officials of the two regulatory bodies on Thursday (today), he said and added that the delegation would also propose extending the date for implementing the revised RMS.