KARACHI - The Karachi Stock Exchange Board failed to achieve a major breakthrough during a meeting with the Securities and Exchange Commission of Pakistan for the second consecutive day Sunday, held to review proposals presented by the brokers. The KSE Board has agreed to keep the market open on Monday (today) after assurance by Advisor to PM on Finance Shaukat Tarin to ease the liquidity shortage in the stock market by arranging funds in the Continuous Funding System (CFS) shares transactions. However, both the regulators decided to hold another round of talks on Monday (today) to reach any conclusion on the issue. Sources, who attended the meeting, said though the proposals put forwarded by the KSE Board to Tarin have not been approved yet, he has assured the KSE management to do his utmost to make available funds in the CFS transactions. They said Tarin had directed the Board to ensure smooth functioning of the stock market and resultantly, the Board decided to continue trading on Monday. Commenting on the opening of the market, analysts said it was not in the interest of brokers to continue trading on the bourses in existing conditions, as more investors will face default. Sources said the main concerning issue before the Board right now was liquidity crisis that had emerged when the CFS financers halted the funding, resultantly the CFS rates jumped to seven-year high to the ratio of 62.97 per cent last Thursday. They said if Tarin managed the funds in CFS transactions, it would boost, though temporarily, the confidence of investors and members of the market. A broker said the Advisor to PM had turned down KSE members' demands in which they asked the KSE Board last Friday to close the market. The CFS, the traditional form of badla, has been showing signs of rising risks in the market, hence the funding requirement through CFS dropped by 16.9pc. The higher rates signals liquidity crunch and investors fear of defaults after the lifting of floor. The suggestions were also forwarded to Advisor to PM on Finance Shaukat Tarin, who is currently on an official visit to US, on Saturday.