SBP issues draft regulations for brokers' financing

KARACHI (November 06 2003): The State Bank of Pakistan on Wednesday issued draft regulations for financing brokers by banks and development finance institutions (DFIs).

These regulations, which have been prepared by a working group, are designed to facilitate the transition from Badla to Margin Financing in stock exchanges of the country; to encourage active participation of banks in this area, and to ensure that the relevant activities are undertaken in a prudent manner.

The working group comprises representatives of State Bank of Pakistan, Securities and Exchange Commission of Pakistan, banks, Karachi Stock Exchange, and stockbrokers.

Views and suggestions on these draft regulations have been invited from all external stakeholders. The draft of these regulations is available at the SBP website, said a release issued by the SBP on Wednesday.

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