Automation of Securities Transfer in CDS. Background. In order to further strengthen the securities transfers on CDS, SECP formed a committee represented by CDC, KSE and NCCPL to propose changes in transfer model.
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In order to further strengthen the securities transfers on CDS, SECP formed a committee represented by CDC, KSE and NCCPL to propose changes in transfer model.
CDC Board advised Management to lead the review of the current process of transfer of securities in consultation with SE’s and NCCPL.
Recommended model is based on various committee discussions and recommendations of CDC, SEs and NCCPL management and also reviewed and approved by KSE New Product Development Committee, KSE Board, CDC Board & SECP.
CDC & NCCPL Regulations are also approved by their respective Boards.
Settlement of securities at CM level
Intra account movement of securities by Participants to / from Sub / House / Main Account
Insufficient control in the system to ensure movement of securities to correct account
Significant amount of manual processing
Substantial number of transactions are generated
NCSS to generate the balance orders based on client level netting – Securities Only
All clients need to have Sub Accounts with Clearing member Participants.
Securities will move directly from respective seller Sub/House Account to the buyer Sub/House Account based on the UIN (under blocked status)
CM will continue to be responsible for money and securities obligations however, there is a provision available to Brokers enabling them to pledge the securities in favor of a Bank, in case of non-payment by their clients on settlement day.
In case of failure of transactions (exceptional cases) the securities will be moved to the Main Account of the Member.
Blocking and unblocking of Securities directly from House / Sub Account
Inter Exchange transactions will also settle directly through respective House / Sub Account through NCSS BTB Module
During BO generation first priority of deliveries will be within the same participant to reduce the number of inter participant free deliveries
For further details, please feel free to contact:
Mr. Aftab Diwan/Mr. Shariq Naseem
Central Depository Company
Tel: 021-111-111-500 (Ext: 3101/4202)
Mr. Badiuddin Akbar
National Clearing Company of Pakistan Limited
E-mail: [email protected]