CARRY-OVER TRANSACTIONS REGULATIONS - 1996 

BACKGROUND:

Whereas carry-over transactions, is an integral part of our trading activity and these transactions are unavoidable for enhancing the market liquidity.

And whereas, there are no regulations governing such transactions as a result thereof making it rather impossible for the Exchange to resolve the disputes arising out of such transactions leading to a crisis situation for the market as well as undue losses and sufferings for the members and the investors at large.

And whereas, in the absence of any regulation one part of the simultaneous deal which is registered with the Exchange on the working days following the transaction date carries the risk of non-completion of that deal due to non-opening of the market or the cessation of the membership of the involved member on the following working day.

In order to give legal protection to carry-over transactions, the Board of Directors of the Islamabad Stock Exchange (Guarantee) Limited with the prior approval of the Corporate Law Authority has approved the following regulation which shall come into force at once.

1.         Short Title:

These regulations may be called "Carry Over Transactions Regulations - 1996".

2.         Preliminary:

These Regulations shall be called "Carry Over Transactions Regulations" and shall form part of the Ready Clearing Regulations.  The Ready Clearing Regulations shall continue to be applicable to Carry Over Transactions in so far as these are not inconsistent with these Regulations, provided however, in the event of any conflict or inconsistency, the related provision of these Regulations shall prevail.

3.         Definitions:

In these Regulations:

a) Exchange Means the Islamabad Stock Exchange (Guarantee)   Limited

b)  Member Means a Member of the Islamabad Stock Exchange (Guarantee) Limited 

c)  Current Clearing Means clearing date applicable to the transaction date.

d)  Next Clearing Means clearing date following the current clearing.

e)  Carry Over Transaction Means the combination of two or more transactions taking place simultaneously and settled in two clearings in sequence.

f)  Approved Means "approved by the Board of Directors of the Islamabad Stock Exchange (Guarantee) Limited.

4.         Eligibility of Shares

                        Carry over transaction shall not be transacted in Shares of Companies other than the approved companies.  All companies already listed and also companies to whom listing is granted after the effective date of these Regulations, shall be deemed to be on the Approved List, unless notified otherwise from time to time by the Board.

5.         Contract Ticket

i) The Carry Over Contract Ticket shall be in the form to be specified by the Exchange.

ii) No transaction shall be admitted as Carry Over transaction, unless it is carried on a Carry Over Contract Ticket, and are executed on the last day of the current clearing.

iii) All such contract tickets shall be prepared by the buyer of current clearing period and seller of immediate next clearing period on the date of transaction and shall be submitted to the Clearing House of the Exchange after getting signatures of the seller of current clearing period and buyer of immediate next clearing period.

iv) The Clearing House of the Exchange shall process the transactions as per Carry Over Contract Ticket and settle these transactions alongwith the normal transactions according to Rules and Regulations of the Exchange.

6.         Claims

                        No claim shall be entertained against Seller/Buyer, if Carry Over transactions are not reported to the Clearing House on the date of the transaction, or in exceptional circumstances, of which the Islamabad Stock Exchange shall be the sole judge on the next working day following the day of the transaction.