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It is wrong to suggest that I have blocked a proposal by the Karachi Stock Exchange regarding Margin Financing, and Borrowing and Lending of Securities, and that the letter to the Chairman Policy Board ie Finance Secretary was written to clarify my position vis-à-vis this allegation.

The framework for Margin Financing and Lending and Borrowing by the brokers is under consideration of the Commission, and in that respect, the Commission in exercise of its mandate is in the process of proposing a set of rules to be framed by the Federal Government under section 16 of the Securities and Exchange Ordinance, 1969. Therefore, the facts in the news report referred to above have been quoted out of context, even the provisions of law have been incorrectly mentioned.

Importantly, the current Commission comprises three Commissioners (including the Chairman) and approvals if any, are given by the Commission as a consensus or by a majority. Therefore, individually no one Commissioner is in a position to block any approval or place impediments in the normal functioning of the Commission.

Copyright Business Recorder, 2010


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