KARACHI: Trading on the Karachi Stock Exchange (KSE) will resume on Monday after Adviser to the Prime Minister on Finance Shaukat Tareen turned down the KSE management’s proposal of suspending trading for a certain period.

“Tareen has assured the market representatives that he would convince banks to resume the money supply line to the market,” a member of the KSE Board of Directors told The News after a meeting between the SECP and the KSE officials here on Sunday.

They would hold another meeting today (Monday) to review the market situation ahead of Tareen’s assurance. They would also discuss the future line of action. On Saturday, the SECP and KSE jointly forwarded a set of six proposals to Tareen. They demanded to either close the market for a ten to 15-day period or arrange the deficit liquidity for the market so that it could function smoothly.

One of the participants of the meeting said the market would be opened with the floor-price mechanism. He also said the blank and short selling would remain banned in the future and ready markets, respectively.

The KSE board introduced the floor-price mechanism on Aug 27. The measure was taken to prevent further losses at the fast-falling stocks market. Though the strategy eventually helped the market avoid further losses, but at the same time it also resulted in sidelining the market participants.