Under the supervision of the Securities and Exchange Commission of Pakistan (SECP), Pakistan’s Capital Market is transitioning to a T+1 settlement cycle, effective 9 February 2026.

The National Clearing Company of Pakistan Limited (NCCPL), in collaboration with the Pakistan Stock Exchange Limited (PSX) and the Central Depository Company of Pakistan Limited (CDC)—collectively referred to as the Capital Market Infrastructure Institutions (CMIIs)—will oversee this transition.

What This Means for You

Under the T+1 settlement cycle, trades will be settled on the next business day rather than the current T+2 (two business days) cycle. This change aligns Pakistan’s capital market with global best practices and aims to enhance operational efficiency, reduce settlement risk, and strengthen the overall safety of settlement systems.

Key Highlights of the Transition

·         All trades executed on or after 9 February 2026 shall be settled on a T+1 basis (i.e., the next trading day).

·         Due to merged clearing on Tuesday, 10 February 2026, only the MTS Release System will be available on Friday, 6 February 2026. All Leverage Buy trades and MTS Release transactions executed on 6 February 2026 will be available for MTS financing on 9 February 2026.

·         The transition of settlement cycle from T+2 to T+1 is applicable for REGULAR market and Deliverable Futures Contracts (DFC) i.e. 30, 60 & 90 days including all DFC Split contracts (where applicable). The settlement date of Cash Settled Futures (CSF) and Stock Index Futures (SIFC) shall remain on T+1 basis.

For detailed guidelines, please refer to the NCCPL Notice: “Transition of Settlement Cycle from T+2 to T+1.”

Courtesy – AKD Securities Limited