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Showing posts from December 22, 2008

MUFAP in disagreement with SECP move

The Mutual Funds Association of Pakistan (MUFAP) has expressed its immediate disagreement on the arbitrary move by the Security Exchange Commission Pakistan (SECP) to re-price Term Finance Certificates (TFCs). Open end income funds are likely to be forced to temporarily suspend issuance, redemption and pricing of their units. The mutual fund industry has experienced remarkable growth and has been able to pay handsome dividend/ return to its unit holders. The industry demonstrated exceptional resilience in the face of acute liquidity problem generally faced by the financial sector and continued to meet redemptions (over Rs. 80 billion in last six months) of its valued unit holders. Shamshad Nabi, CEO, MUFAP in a statement said, “In order to meet any eventuality in the future, the industry was in constant touch with the government of Pakistan, State Bank of Pakistan and SECP, and as a result of these meetings, the Government agreed to guarantee the ‘A’ rated TFCs held in the investment p...

KSE Board mulls giving relief to CFS financing investors

Karachi Stock Exchange (KSE) Board has started mulling over the different proposals for giving relief to the investors presently trapped in CFS financing.KSE Board of Directors’ emergent meeting was held Sunday night, which decided that some middle road would be found out in consultations with the stakeholders for giving relief to the CFS investors. The meeting also considered activating member protection fund and payment of losses to the members from this fund. It was also decided in the meeting that the KSE Board today would again review the resolution of the issue of the existing shares valued Rs11 billion in CFS market in the light of the court decision.Another KSE Director told Geo News that the stakeholders’ consultations have been completed to a great extent. However, the Board didn’t take any final decision due to legalities involved.

KSE board considering relief to CFC investors

KARACHI: The Karachi Stock Exchange (KSE) board has started considering to provide various relief options to the investors present in the CFC financing.An emergency meeting of the KSE board was held in the night on Sunday in which it was decided that a middle way would be found with consultation of stake holders to provide relief to CFC stock holders. This was also considered in the meeting to activate the member protection fund and to meet the members losses from this fund.The KSE board will review today the issue of the shares valued at Rs11 billion available in the CFS market in view of the court decision.A KSE director told Geo News that consultations have been made up to large extent among the stake holders but due to some legal complications the board has not yet approved any decision.