Updated at: 0119 PST, Wednesday, October 15, 2008
KARACHI: The Board of Directors of Karachi Stock Exchange (KSE) in its meeting on Tuesday decided to remove the “floor mechanism” from October 27.

A KSE statement issued here on Tuesday said the normal trading parameters of five per cent upper and lower circuit breakers will be imposed from that day onwards.

It said over the past few weeks, the KSE has been in active consultations with the Ministry of Finance, SECP, State Bank of Pakistan and other stake-holders to develop a set of measures for achieving market ability.

In this context three critical areas were identified namely Liquidity, Risk Management and Restoring Investor Confidence.

The statement further pointed out that the Board of Directors of the KSE met on Tuesday to review the progress made on these efforts and noted that some recommendations have been implemented (for example announcement of Buy back of shares, Reduction in CRR) while other recommendations (for example Equity Fund, Put Options, change in CFS margining regime, etc.) are being processed.

The respective authorities like Ministry of Finance/ SECP will announce the final details of all the stabilisation measures.

The statement said the Board has decided to remove the “floor mechanism” from the KSE from October 27, 2008.

Normal trading parameters of 5% upper and lower circuit breakers will be imposed from that day onwards.

The statement further said the Board of Directors has been informed that the Ministry of Finance and SECP will implement the full set of stabilisation measures prior to October 27, 2008.