KARACHI: National Clearing Company of Pakistan Limited (NCCPL) has reshuffled securities eligible for trading under Margin Financing (MFS), Margin Trading (MTS) and Securities Lending & Borrowing (SLB) effective from March 17, 2017.
NCCPL carries a range of products and services which help current and potential investors in effective, efficient and transparent trading in the Capital Market.
As many as four companies have been included in the list of Margin Trading (MTS) eligible securities including Faysal Bank Limited, Power Cement Limited, Quice Food Industries and Treet Corporation while HAscol Petroleum and Amreli Steels have been excluded from the list.
All MTS transactions are executed through on-line trading system provided by NCCPL to market participants. MTS is an undisclosed market for financees and financiers and the maximum mark-up rate in MTS market is KIBOR+8 percent.
All transactions executed in MTS market are based on financing participation ratio of 15 percent.
Three companies have been included in the existing lists of Margin Financing eligible securities and SLB eligible securities including Service Fabrics Limited, TPL Properties Limited and Loads Limited while ten companies have been excluded from both these lists including Brothers Textile Mills, Mirza Sugar Mills, Pangrio Sugar Mills, Associated Services Limited, KASB Corporation, Resham Textile Industries, Pakcem Limited, First Constellation Modaraba, First Dawood Mutual Fund and Standard Chartered Leasing Limited.
Margin Financing (MF) facility is made available to all members against net ready market purchases of their clients and proprietary positions. MF can be obtained as per agreed financier participation ratio. However, minimum of 25 percent should be contributed by Financee. NCCPL provides a system to MF participants for recording and settlement of MF transactions.
SLB transactions are executed through an on-line trading platform provided by NCCPL to lenders and borrowers for placing offers and bids. SLB is an undisclosed market for lenders and borrowers wherein the motivation for lenders is to earn income/return on their idle securities while borrowers may utilize SLB functionality to avoid delivery failure in ready market or to make a short sale.