Stocks Observer. com

KARACHI-(Dow Jones)- Pakistan's National Clearing Company has served final notices to four securities firms after they failed to pay dues incurred when the benchmark KSE-100 index plunged 27% from Dec. 15 to Dec.24, an official of the agency said Tuesday. "These securities firms have to clear around PKR160 million in a day, failure to do so will result in selling their membership card to clear dues and declaring them default members," the official, who asked not to be named, said. The National Clearing Company provides clearing and settlement services to all three stock exchanges in the country. Of the four companies, three are members of the Karachi Stock Exchange and one belongs to the Lahore Stock Exchange, he said. Last month, a committee comprising members of the Mutual Funds Association of Pakistan, directors of the Karachi Stock Exchange and officials of the Securities Exchange Commission of Pakistan and the National Clearing Company of Pakistan was constituted by

The National Clearing Company of Pakistan Limited (NCCPL) has served Final Loss Notice to four members on Monday owing to their disability of paying cumulatively Rs160 million dues to the Company on account of Continuous Funding System (CFS). “Finally four members (three members of Karachi Stock Exchange and one member from Lahore Stock Exchange) are still unable to meet their final aggregate demand of approximately Rs160 million. Consequently they have been served Final Loss Notice by NCCPL of one business day to settle their outstanding demand,” said NCCPL handout. Earlier, NCCPL has introduced a voluntary CFS MK-II Square-up Scheme to settle the disputed open position of Rs9.8 billion. All the CFS participants have paid their dues through availing one-time voluntary scheme or otherwise, but four of members failed to do so and they have been served the loss notice, it was learnt.