KARACHI (December 24 2002) : National Clearing and Settlement Company has decided to induct 120 more securities from December 30, 2002, into the system and would be routed through Balance Order Settlement System.
According to a release of the Company, further to induction of 188 Securities on the National Clearing & Settlement System (NCSS), the company has announced the eligibility of 120 more securities for the purposes of NCSS from December 30, 2002.
These securities, which will be settled under the Balance Order Settlement System, will bring the total number of securities in NCSS to 308.
Recent years witnessed tremendous achievement in terms of automation of Pakistan's capital market.
Two components of the capital market, namely Trading and Settlement, were completely automated with the introduction of KATS and CDS, respectively.
With successful automation of trading and settlement systems in Pakistan, a need was strongly felt to automate the 'clearing' component of the capital market.
Hence, in line with its vision to bring the Pakistan capital market at par with the foreign counterparts, CDC launched the National Clearing and Settlement System (NCSS) on behalf of the National Clearing Company of Pakistan Limited (NCCPL) on December 24, 2001.
The induction of securities in NCSS, which initially started with the induction of only 2 securities, took off with speed and with the induction of these securities, over 40 percent securities listed on Karachi Stock Exchange will be settled on NCSS within a short period of one year.
With the introduction of a consolidated and geographically neutral clearing house, NCSS has expedited the settlement process of securities in NCSS as well as helped the capital market in terms of providing stability by capping the systematic risk.
Further, an automated pay & collect system in NCSS promises an extra ordinary transparency and efficiency in the workings of the whole capital market once all the securities join NCSS.