Collective Investment Scheme: NCCPL reduces security deposit requirements

KARACHI: National Clearing Company of Pakistan Limited (NCCPL) as part of its continuous endeavour to facilitate market participants, rationalize cost of services, implement prudent risk management measures and to promote ease of doing business, has substantially reduced the security deposit requirement prescribed for the Collective Investment Scheme (CIS) admitted as Non-Broker Clearing Members (NBCMs).

NCCPL has introduced a progressive security deposit requirement linked with the assets under management of CIS this measure will lead to reduction in security deposits ranging from 40 percent to 60 percent for various CIS admitted by NCCPL as NBCM.

This reduction will encourage CIS to apply for admission as NBCM which will ultimately result in enhancing the capacity of securities brokers to take exposure. Further, it will also reduce the settlement risk by shifting the settlement obligation to the respective NBCM.

NATIONAL CLEARING COMPANY OF PAKISTAN LIMITED (NCCPL)

"We are very thankful to the Mutual Fund Association of Pakistan (MUFAP) for the help and support extended during the process and place on record our gratitude to Securities and Exchange Commission of Pakistan for enabling expeditious implementation of the initiative", NCCPL said in a statement issued here on Monday.

NCCPL shall continue to look for every possible opportunity to provide cost effective, operationally efficient and seamless services to facilitate the market participant and promote ease of doing business, it added.

NCCPL is the only licensed clearing house in Pakistan which acts as Central Counter Party in respect of all trades and transaction carried out at PSX.

Copyright Business Recorder, 2021