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NCCPL Reduces Security Deposit Requirements for Collective Investment Scheme

The National Clearing Company of Pakistan Limited (NCCPL) has substantially reduced the security deposits prescribed for the Collective Investment Scheme (CIS) admitted as Non-Broker Clearing Members (NBCMs).

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According to details, NCCPL has introduced a progressive security deposit requirement linked with the assets under the management of CIS. This measure will lead to a reduction in the security deposits ranging from 40% to 60% for various CIS admitted by NCCPL as NBCMs.

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

This development is a part of the NCCPL’s continuous endeavor to facilitate market participants, rationalize the cost of services, implement prudent risk management measures, and promote ease of doing business.

NCCPL has expressed its gratitude to the Mutual Fund Association of Pakistan (MUFAP) for the help and support it has extended during the process. It has also thanked the Securities and Exchange Commission of Pakistan (SECP) for enabling the expeditious implementation of the initiative.

NCCPL plans to continue looking for every possible opportunity to provide cost-effective, operationally efficient, and seamless services to facilitate the market participants and promote ease of doing business.

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It goes without saying that the NCCPL is the only licensed clearing house in Pakistan that acts as Central Counter Party in respect of all trades and transactions carried out at Pakistan Stock Exchange.

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