The Karachi Stock Exchange (KSE) has informed all the members that effective March 26, 2012 all Negotiated Deals (NDs)/Off-Market transactions reported to the Exchange through Negotiated Deals Market (NDM) will be cleared and settled through National Clearing and Settlement System (NCSS) at National Clearing Company of Pakistan Limited (NCCPL) for facilitating its proposed role of withholding agent for computing, deducting and depositing Capital Gains Tax (CGT) for Federal Board of Revenue (FBR).
In consideration of the main features of clearing and settlement of NDs elaborated by NCCPL in its earlier notice, the KSE notified the following changes in NDM/Off-Market reporting mechanism:
1. All NDs cannot be settled on their Reporting Date ie T+0 Settlement Cycle.
2. As such NDM system will not restrict the members to record their NDs on T+0 Settlement Cycle till Friday, March 30, 2012, in case any transaction reported mistakenly on T+0 Settlement Cycle by the members will be transmitted to NCCPL for its settlement on T+1 Settlement Cycle.
3. Effective from Monday, April 02, 2012, NDM system will not allow reporting of NDs on T+0 Settlement Cycle.
4. Affective from Monday, March 26, 2012, no regular trades will be allowed through KATS on T+0 Settlement Cycle, which are currently allowed in certain exceptional cases relating to Mergers or other Corporate Restructuring on case to case basis.
5. NDs can be reported through NDM for their Settlement Cycle starting from T+1 to maximum settlement date available on the monthly Clearing and Settlement Schedule published by the Exchange.
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