NCCPL eases MTS rules for IPOs with 6+ month listing history

December 10, 2024 (MLN): The National Clearing Company of Pakistan Limited (NCCPL) has introduced certain amendments to regulations related to the Margin Trading System (MTS) as per which IPOs with a listing history of 6+ months may be considered if thresholds are met.

Additionally, securities meeting criteria over two consecutive review periods are eligible.

The basic criteria remain focused on the Top 200 book-entry securities, selected based on market capitalization and turnover. These securities must meet specific requirements for turnover, public float, trading days, and listing history. However, securities with adverse auditor opinions, ongoing investigations, defaulter status, or negative equity are excluded.

Key procedural updates include regular reviews to be conducted in January and July using data from the prior six months.

Moreover, notices of inclusion/exclusion will be given (60 days for Category A, 15–30 days for Category B).

Furthermore, securities are categorized based on trading days and impact cost for margin calculations, with higher scale-up factors applied to Deliverable Futures Contracts (DFC) and MTS-eligible securities.

These amendments, as introduced by NCCPL, will take effect from Monday, December 23, 2024

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