Karachi: The Pakistan Stock Exchange (PSX) has announced an update to its list of Margin Eligible Securities (MES) that are acceptable as collateral, according to the latest quarterly review mandated by the National Clearing Company of Pakistan Limited (NCCPL) regulations. This revision will take effect from October 30, 2024, allowing clearing members ample time to adjust their collateral in accordance with the new guidelines.
The NCCPL, which oversees clearing and settlement services for the securities market in Pakistan, conducts these reviews under the framework set out in schedule III of chapter 12 of its 2015 regulations. According to information available from the Pakistan Stock Exchange (PSX), the updated MES list categorizes securities into Category A and Category B, as detailed in Annexure A and Annexure B respectively. These securities are approved based on stringent criteria ensuring they meet the necessary standards for collateral usage.
Additionally, the exchange has provided a list of Exchange Traded Funds (ETFs) and details on securities transitioning between categories or entering and exiting MES status. These specifics are contained in Annexures C through F. In compliance with the same regulatory provisions, the PSX continues to accept Government of Pakistan Ijarah Sukuk, Pakistan Investment Bonds, and Treasury Bills. These are complemented by electronic units of CDS Eligible Open-End Funds classified as Money Market Schemes, listed in Annexure G.
In terms of bank guarantees, which are also permissible as collateral under NCCPL rules, a current list of eligible banks has been enclosed in Annexure H. Clearing members are urged to update their collateral holdings in line with these new entries before the upcoming deadline to ensure compliance and avoid the risks associated with ineligible securities.
Clearing members must ensure their collateral is in order before the set deadline of October 30, 2024, as the company will no longer accept or recognize securities that do not meet the updated eligibility criteria post this date.