Central Depository Company (CDC), in collaboration with National Clearing Company of Pakistan Limited (NCCPL), recently implemented Automation of Securities Transfer Mechanism in the Central Depository System. This project was initiated in 2008 as a joint effort by CDC and NCCPL with the objective of introducing efficiency in the settlement process relating to securities transactions and to ensure movement of securities from/to the respective sub-accounts.
CDC played a lead role in the project and co-ordinated the efforts of all the participants. Inline with the view to promote straight through processing in capital market operations, this mechanism has been developed to automate free delivery transactions to a great extent, thereby minimising use of Main Account. The new mechanism allows securities to be automatically transferred from the seller's CDS account to the buyer's CDS account without being routed through the Main Account.
After automation, manual free deliveries and use of the participants' Main Account are restricted only to exceptional circumstances not covered by the automated settlement process. As a result of this project, settlement of a vast majority of securities transactions, executed in the three stock exchanges of the country, are now being performed directly from the respective accounts of investors without the need of any manual input of transaction, thus ensuring complete transparency and straight through processing in the market.-PR
Comments
Comments are closed for this article.