Investor Guide>>Clearing and Settlement                                                                      Back to Investor Guide Main

- What is T+3 settlement cycle?                                                                                                                  Back to top
  in order to enhance the risk management, the Islamabad Stock Exchange has introduced T+3 settlement system. under this system the purchases and sales of securities is settled on the third day following the day of trade. this system reduces the time between execution and settlement of trades, which in turn reduces the market risk. it also reduce the settlement risk as the settlement cycle is shorter. 

- If I have sold securities when do I deliver them to the broker?                                                       Back to top
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?                                                      Back to top
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.

- When can I expect to receive funds/securities from the broker?                                                     Back to top
The securities and the funds are paid out to the broker well before the settlement day, which is normally held on Wednesday. The ISE regulations stipulate that the trading member should pay the money to the investor within 3 working days of the settlement day, while delivering of securities shall be made by the member after one week of the clearing/settlement date.