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NCCPL further develops its Securities Lending & Borrowing System

Date: April 15, 2014

National Clearing Company of Pakistan Limited (NCCPL) is continuously striving hard to nurture persistent growth of the Capital Market through steady improvements in the efficiency and reliability of its services. Although NCCPL had implemented Securities Lending & Borrowing System (SLB) in a capacity of an Authorized Intermediary earlier in the year 2011, however, in view of the underdeveloped state of the SLB market, NCCPL takes pride in offering further modified & improved SLB, effective from April 14, 2014, for its Market Participants so as to promote an overall liquidity particularly in the SLB Market.

It was felt that for a robust market to develop, there is a need for greater diversification of products among the participants. The enhanced SLB include features like full handing over of transaction value to the lenders and providing more form of collaterals such as Securities, Bank Guarantee, Treasure Bills etc.
CEO NCCPL, Mr. Muhammad Lukman said that “The SLB market is an effective tool for the lenders to earn income on their idle securities. Whereby, borrowers can use SLB for effecting short sell and to meet delivery failure. The modifications in the SLB are implemented considering both the borrower’s and the lender’s perspective.”

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