What is T+2 settlement cycle?
If I have sold securities when do I deliver them to the broker?
If I have bought securities when do I pay money to the broker?
When can I expect to receive funds/securities from the broker?

What is T+2 settlement cycle?

In order to enhance the risk management, the Islamabad Stock Exchange has introduced T+2 settlement system. Under this system the purchases and sales of securities is settled on the Second day following the day of trade. This system reduces the time between execution and settlement of trades, which in turn reduces the market risk.

If I have sold securities when do I deliver them to the broker?

You have to deliver the securities to the broker immediately upon your getting the order confirmation slip or as mutually decided between you and the member.

If I have bought securities when do I pay money to the broker?

If you have bought securities, you have to pay-in funds to the broker before the settlement day or as mutually decided between you and the trading member through the crossed cheque.

When can I expect to receive funds/securities from the broker?

The securities and the funds are settled on the settlement date between the broker and the investors. A clearing schedule is issued well in advance to all the members and the notice board of the Exchange. A broker is supposed to transfer securities to investors’ own account as requested. Similarly, a broker is supposed to pay the credit balance to the investor upon one day’s prior notice as agreed in the account opening agreement.