However, KSE sources said that any written notice from SECP had not been received till Friday evening. The SECP held meeting with the KSE board, National Clearing Company of Pakistan Limited (NCCPL) officials and CFS lenders to discuss various issues regarding leverage and the most crucial issue of removal of floor.
Sources said that various proposals came under discussion during the meeting. The meeting discussed the proposal of forced rollover of CFS for six months with a flat interest rate of 10 percent per annum. The proposal to open the market with one percent lower lock was also discussed.
The possibilities of removal of floor mechanism remained the main focus of the meeting. The meeting was told by the SECP that after unavailability of any bailout package from the government due to IMF directive, there was no reason to continue floor mechanism.
Later, the KSE board held another meeting with NCCPL to discuss the issue of CFS. It is learnt that the KSE board will hold its meeting with SECP on Saturday and also on Sunday to finalise the proposal for smooth lending after removal of floor mechanism. The formal announcement of the date for removal of floor is expected on Sunday, sources added.