KARACHI: The National Clearing Company of Pakistan Limited (NCCPL) has revised Institutional Delivery System (IDS) initiation and affirmation facility, amid upcoming event of Pakistan’s reclassification from the MSCI Emerging Markets to the Frontier Markets Index, a statement issued by the company said on Thursday.
The IDS module will be made available to custodian clearing members (CCMs) and broker clearing members (BCMs) for re-initiation/affirmation in cases where trades of foreign institutional clients were rejected by CCMs due to errors, it added.
“NCCPL has conducted several discussions with concerned stakeholders that include CCMs, BCMs, Pakistan Stock Brokers Association (PSBA), Pakistan Stock Exchange (PSX) and Central Depository Company of Pakistan (CDC) and sought their views over the volume of trades and value of transactions expected on the event date and its corresponding impact on the operational capacity of BCMs and CCMs,” the statement added.
NCCPL under the new amendments will accept audited or unaudited liquid capital (LC) statements till November 29, 2021 to facilitate BCMs trading on behalf of foreign investors.
The audited or unaudited LC statement could be prepared for any date. However, in case of un-audited LC Statement, audited LC statements will be submitted to NCCPL within a period of 7 working days starting from the date at which the un-audited LC statement was submitted to NCCPL or any other extended period.
The charges of Rs5,000 for the submission of audited LC statements will not be collected. Such revised LC will be used for computing the exposure limit from November 29, 2021.
The statement further stated that a bank guarantee up to Rs400 million from a bank that has been allocated a minimum long term credit rating of ‘A’ can be provided. Further, in case of a bank holding long term credit rating of ‘AA’ or above, bank guarantee up to Rs1 billion can be provided by a clearing member issued by such bank to the company as collateral.
The existing limits will be doubled whereby a bank guarantee of Rs800 million or Rs2 billion will be accepted from banks that are holding long term credit rating of A or AA.
[embedpost slug=”/nccpl-collects-capital-gains-tax-on-shares-disposal-on-nov-19/”]