KARACHI, Jan 21: The National Clearing Company of Pakistan (NCCPL) issued the list of Securities Eligible for Margin Trading (MT) System, on Monday. The securities, which would be eligible for MT from Feb 21, were notified in accordance with the Regulation 7C.3.3, of the NCCPL Regulations.

The eight securities identified included: Cherat Cement Company, Dawood Hercules Corporation; Fauji Cement Company, Kot Addu Power Company, Nishat (Chunian) Limited, Nishat Chunian Power, Netsol Technologies and Nishat Power.

Simultaneously, the Karachi Stock Exchange issued ‘Revised list of Margin Eligible Securities acceptable as Collateral for all markets’ with effect from Monday Feb 25. KSE stated that in terms of regulation 4.6(h) of the Regulations revised list of 75 ME Securities (list available with notice on www.kse.com.pk) would be acceptable as collateral by the Exchange after giving at least thirty days advance notice.

Moreover, the Exchange stated that it was also accepting T-Bills and electronic units of CDC eligible open-ended funds which were categorised as Money Market Schemes in accordance with the criteria prescribed by the Commission vide its circular No 7 dated Mar 6, 2009 as collateral for all Markets. The list of 14 eligible open-ended funds was provided (also available on KSE website as annexure-B). Also in terms of the definition of Bank Guarantee acceptable as collateral under the Regulations, the list of eligible Banks of which the Bank Guarantee would be accepted, were identified. (also enclosed as annexure-C with notice on KSE website).

The KSE notice for ‘TREC holders/brokers’ ended with the advice “to update collateral deposited with Exchange in terms of new ME Securities before Feb 25, failing which the Exchange reserves the right to value non-eligible ME Securities as ZERO on or after the effective date”.