Karachi: The National Clearing Company of Pakistan Limited (NCCPL) has released comprehensive guidelines aimed at transitioning to a T+1 settlement cycle, according to a circular dated January 12, 2026. This development follows the earlier circular issued in August 2025, and it provides detailed instructions for Custodian Clearing Members (CCM) in their handling of Institutional Delivery Settlement Confirmation (IDSC) transactions.
The guidelines introduce several technical and operational changes intended to streamline the transition process. Key among these changes is the auto-affirmation of IDSC transactions on T+0. Under this system, all IDSC transactions initiated by Broker Clearing Members (BCMs) and Trading Only brokers of the Principal Clearing Member (PCM) will be manually processed on T+0. Transactions not affirmed by CCMs within the designated time schedule will be automatically affirmed by NCCPL.
A new "Sub Account Tagging" functionality will be available to CCMs, allowing them to tag their Universal Identification Number (UIN). This feature will enable the automatic tagging of sub-accounts, simplifying the preparation of settlement obligations. In cases where multiple sub-accounts are linked to a single UIN, CCMs will need to provide the necessary information through a designated screen.
Further changes include options for CCMs to reject auto-affirmed transactions on T+1 and the introduction of a "User Cancelled" functionality for the cancellation of rejected transactions. Additionally, CCMs can express their settlement consent through a designated screen post-activity completion.
Another notable update is the ability for BCMs to re-initiate rejected IDSC transactions on T+1, which can then be re-affirmed by CCMs. New transaction types "IDSCR" and "IDSCP" have been added to non-exchange transaction reports to facilitate this.
CCMs will also have enhanced control over sell-side transactions, allowing partial or full activation through a dedicated "CCM Sell side Activation" screen. The brokerage commission definition screen will provide BCMs with the ability to specify commissions, which will reflect in non-exchange downloads.
In terms of financing, BCMs will have access to MF Spot and pledging facilities for buy-side rejected IDSC transactions. These facilities will enable BCMs to secure financing through MF SPOT functionality or by pledging shares with banks via the "Pledge Financing Module" on the NCSS.
According to information available from the Pakistan Stock Exchange (PSX), these updates align with broader market reforms aimed at enhancing operational efficiency and reducing settlement risk. The transition to a T+1 settlement cycle is expected to significantly impact transaction processing times, reflecting a moderate move in the market.
The NCCPL's roadmap for this transition marks a significant step in aligning Pakistan's financial market infrastructure with international best practices.