Karachi: The Karachi Stock Exchange (KSE) has informed all the members that effective March 26, 2012, all Negotiated Deals (ND)/off-
Market transactions reported to the Exchange will be cleared and settled through the National Clearing and Settlement System (NCSS) at National Clearing Company of Pakistan Ltd. (NCCPL).
According to Alfalah Securities Limited, this would be done to enable NCCPL to act as a withholding agent for computing, deducting and depositing Capital Gains Tax (CGT) for Federal Board of Revenue (FBR). The new mechanism entails that the off-market transactions would be settled through T+1 to maximum settlement date available on the monthly clearing and settlement schedule published by the exchange from April 02, 2012. The changes would improve transparency and efficiency thereby leading to improved investor’s confidence in the stock market.