Settlement and Clearing

How Trades Are Settled on PSX

When you click "buy" on your trading platform, the journey of your trade is just beginning. Behind the scenes, a sophisticated settlement and clearing process ensures that shares are transferred from seller to buyer and funds move in the opposite direction. The National Clearing Company of Pakistan Limited (NCCPL) orchestrates this entire process, acting as the central counterparty for all trades executed on PSX.

Pakistan follows a T+2 settlement cycle, meaning that if you buy shares on Monday (Trade day), the shares will be credited to your CDC account and funds debited from your broker's settlement account by Wednesday (T+2). This system replaced the older T+3 cycle and brings Pakistan in line with international standards. Understanding settlement mechanics helps you plan your trades, manage cash flow, and avoid failed settlements that can result in penalties.