LAHORE, Oct 7: Some 15 more securities have been declared eligible by the Central Depository Company (CDC) for clearing and settlement through the National Clearing and Settlement System.

These securities would be eligible for transaction through the NCSS from October 15, said a news release issued here on Tuesday.

With the induction of these new companies, the total number of securities settled through the NCSS will rise to 316 from current 301 reported last month. By the end of December, all the actively traded CDS live securities are expected to join the NCSS.

The 15 companies declared eligible include: Asian Leasing Corporation Ltd, Baig Spinning Mills Ltd, BF Modaraba, Bannu Woollen Mills Ltd, Brothers Textile Mills Ltd, Crescent Boards Ltd, Diamond Industries Ltd, Dar-es-Salam Textile Mills Ltd, Essa Cement Ltd, East West Insurance Company Ltd, First Constellation Modaraba, First Elite Capital Modaraba, First Islamic Modaraba, First Paramount Modaraba and Gandhara Industries Ltd.

The news release said the NCSS was an important infrastructure project designed to bring efficiency to capital market through on-line payment structure. It is an electronic system developed to replace the individual clearing houses operated in each of Pakistan’s three stock exchanges by a single entity. The NCSS is operated by the CDC under a facilities management agreement with the National Clearing Company of Pakistan Limited (NCCPL).

The Balance Order Settlement (BOS) option is available in the NCSS to settle trades and transactions received from different sources. The BOS was developed, according to the release, to reduce the number of actual settlements by netting sell and buy transactions. Under the BOS, the clearing house tallies all trades of a given member in each security and arrives at one or more deliveries which reduces the actual number of settlements.