Banks begin selling shares of defaulting KSE members

KARACHI: The banks have started selling shares of the Karachi Stock Exchange (KSE) members, who failed to make payments of the margin amounts to the banks.

KSE members told Geo News that several major members were not being able to make payments of the margin for the last two months, which has prompted the banks selling all those share that they (defaulting members) had kept as security with the banks.

One senior banker told Geo News that the banks currently have investments of over Rs30 billion on account of shares financing, while the recovery of margin to the banks for the last two months remained negligible, which has compelled the banks selling these shares for meeting their losses. It may be recalled that the finance ministry had already directed the banks restricting their investments in the bourses