As part of continual plans to improve the clearing and settlement system for clearing members, pre-settlement delivery (PSD) functionality will be implemented through National Clearing and Settlement System (NCSS) in Pakistan, effective Jan. 30 2012.
Clearing members will be given an option to deposit net-sold securities per Unique Identification Number with the National Clearing Company of Pakistan (NCCPL) on trade date. Consequently, NCSS delivery obligation and margin requirements, to the extent of such PSD, shall not be taken into account by the stock exchanges and NCCPL.
The details the system were explained by the NCCPL.
Pakistan has a programme of enhancements to its market infrastructure in order to attract liquidity. The Karachi Stock Exchange (KSE) recently added two further two sub-clauses to its existing short selling regulation, which will allow market participants to execute their short sale orders without any price check (Uptick or Zero tick). A mock session will be available for KSE members on Feb. 4, 2012 while the live system will be effective from Feb. 6, 2012 through the Karachi Automated Trading System.
(JDC)