Karachi, The National Clearing Company of Pakistan Limited (NCCPL) is advancing its efforts to transition to a T+1 settlement cycle from the current T+2 system, an update aimed at enhancing the efficiency of securities transactions in Pakistan. This development follows earlier circulars issued by the NCCPL on January 16 and April 5, 2024, which initially communicated the plans for this significant shift in settlement operations.
NCCPL has been engaged in detailed discussions with key stakeholders, including the Central Depository Company (CDC), Pakistan Stock Exchange (PSX), Securities Brokers, Pakistan Stock Brokers Association (PSBA), Custodian Clearing Members, Professional Clearing Members, and the Mutual Funds Association of Pakistan (MUFAP). These deliberations aim to address concerns and document requirements critical for the effective implementation of the shorter settlement cycle.
Despite the complexity of the transition, NCCPL remains committed to providing a final roadmap and scheduling a pilot run, with a communication promised by April 25, 2024. The company is focused on aligning operational processes with global practices where similar transitions to shorter settlement cycles have recently been adopted.