HOW ARE SETTLEMENT AND CLEARING DONE

Clearing and settlement of all stock exchange transactions are provided by National Clearing Company (NCCPL),

 which acts as go between for KSE and Central Depository Company (CDC) which is the share depository company.

 Shares move between share-accounts held by the different participant-brokers of the Central Depository Company (CDC).

Stock market transactions are settled on the second day after the trade. Transfers are based on trades done at KSE.

 Shares are transferred on settlement date (T+2) to the buyer, and the buyer pays the seller through

 the clearing banks within the same settlement period. 

This means that transactions done on Monday must be settled by Wednesday.

 Settlements of accounts are done in the clearing house through National Clearing & Settlement System (NCSS),

 which is a fully automated electronic settlement system. 

Visit NCCPL website for further details regarding clearing and settlement