Body to give final shape to mode of stocks financing

Posted: July 28th, 2005 | Author: | Filed under: News | Tags: , , , , , | No Comments »

The ‘Shaukat Tarin Committee’ will hold a meeting with all stakeholders of stock market on Thursday evening to give a final shape to a new mode of financing, in order to bring back investors to the lack-lustre stock market and improve liquidity.

According to sources, the Committee has improvised the recommendations to be placed with government officials expected to meet in Karachi on Friday, headed by Dr Salman Shah, Advisor to Prime Minister on Economic Affairs, and Omar Ayub Khan, State Minister for Finance.

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Stock market needs Rs 30 billion to improve liquidity

Posted: July 26th, 2005 | Author: | Filed under: News | Tags: , , , , | No Comments »

Lack of appropriate system to change the traditional badla to margin financing dried up the volumes, forcing the market to trade in a narrow band, resulting in serious drain market liquidity. According to a report presented to Shaukat Tarin – led Committee on “Stock Market Liquidity”, the stock market is driven by liquidity flows.

In case of Pakistan too, this is equally true. When the implementation of changeover from the traditional badla to margin financing began, a lack of appropriate preparation resulted in liquidity crunch. This is a serious situation and needs to be addressed urgently.

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