February 9, 2026: PSX will adopt T+1 settlement cycle: SECP

KARACHI: In a move to modernize Pakistan’s capital markets, the Securities and Exchange Commission of Pakistan (SECP) has announced that the Pakistan Stock Exchange (PSX) will adopt a T+1 (trade-plus-one) settlement cycle starting February 9, 2026.

The announcement was made by SECP Chairman Akif Saeed at a high-level event in Karachi attended by representatives from PSX, National Clearing Company of Pakistan (NCCPL), Central Depository Company (CDC), PMEX, securities brokers, banks, and industry stakeholders.

The shift from the current T+2 to a T+1 cycle is aimed at enhancing market efficiency, transparency, and investor protection by accelerating the settlement process and reducing exposure to credit and market risks. The faster settlement timeline is also expected to improve liquidity and reduce the chances of default due to market volatility or operational delays.

Terming it a major milestone, the SECP Chairman noted that Pakistan is aligning itself with leading global markets such as the United States, China, Canada, Mexico, and Argentina—countries that have already implemented or are in the process of adopting the T+1 framework.

NCCPL is spearheading the transition under SECP’s direction, with a dedicated implementation committee formed to oversee the process. The committee includes representatives from SECP, capital market infrastructure institutions (CMIIs), custodian banks, and securities brokers. Consultations have also been held with foreign investors to ensure a smooth adaptation.

To facilitate operational readiness, NCCPL has developed a detailed roadmap and procedural guide to help market participants identify and resolve any challenges ahead of the transition. The SECP Chairman urged all stakeholders to begin reviewing and upgrading their systems to align with the new settlement timeline.

Market experts view the development as a strategic reform that underscores the growing maturity and resilience of Pakistan’s financial markets. The initiative also reinforces ongoing efforts to align the capital market with international best practices.

Copyright Business Recorder, 2025