KARACHI - The clients of stock brokers who default on their payments and disappeared should be named in the Credit Information Bureau (CIB) list of defaulters so that they could neither obtain loans from banks nor resume trading with any other broker. Kamran Abbas, CEO United Capital Securities while talking to The Nation, stated this. If a consumer of a bank fails to pay the credit cards payments or loan instalments, he is declared defaulter and this information is placed in the CIB so that he could not borrow further money from any other bank. The same policy should be adopted for the clients of the brokers who default in clearing their financial liabilities and disappear. The CIB maintains a list of consumer credit and default history and it is beneficial generally for the banks. This assistance should also be given to other business community as non-payer easily runaway from their dues. The main cause of past crisis of the Karachi Stock Exchange is that clients did not fulfil their commitments and it was not because of the fault of the broker or specific product. He further said that the stock market crisis including the 2005 market crash and the current liquidity crunch, was not because of CFS MK-II or the trading style but it was because of the lack of commitment of the clients with their concerned brokers which resulted in the downturn of the trading at the stock market. We cannot only blame CFS MK-II or any product for any of the stock crisis, but the defaulters were the main cause of it. The proof of my statement is that market participants are asking to relaunch the ready board leverage product, which is the need of stock market. The common perception is that 'Badla financing and other products were misused by the stock participants and this over smartness is the main reason of markets instability, but I do not agree with this hype, he added. The actual fact is that our clients defaulted and 90 per cent of these clients had the ability to pay the dues but in the time of crisis, they did not even attend the phone calls of their respective brokers. The role of the broker or member is just to facilitate their clients in execution of orders and settlement. Brokers can manage the risk in open market but the case of last crisis was different as the market was closed for 108 days and shares were reopened 70 to 80 per cent down. In Pakistan, the rights of clients are protected as whenever a dispute arises between client and broker, the client can knock the door of the KSE or SECP but on the other hand, members or brokers have no such options, he detailed. I suggest that there should be a complaint cell in the stock exchange where members and brokers can lodge their complaints against clients and after scrutinising the case, KSE could publicise the name of clients who default on their payments. Other stock members and commercial banks that are eager to open new accounts and give loans and credit can also be facilitated from this list of defaulted clients, and this is in the best interest of a transparent atmosphere at the local bourse. I personally think that all trading options should be made available for the investors including ready board leverage and future trading because more options mean more trading activity, he said adding, these products are the attraction of the stock market. While answering a question, Kamran Abbas said that the market is showing strong signs of improvement and investors are confident for a fair solution of market related issues. KSE 100-index is much healthier now even without the ready board leverage product and forward counter will soon be reopened with the availability of 10 scrips and this will further boost the trading activity. Moreover, market is expected to move upward because the KIBOR rate is set to its 13-month low and inflation numbers has fallen from 24pc to 12pc which is in favour of stock market. The interest rates are down as well and people are coming back to invest at the stock exchange.