1. MEMBER REPORT BYNCCPL NATIONAL CLEARING COMPANY OF PAKISTAN LIMITED BYNCCPL

2. FRAMEWORKFRAMEWORK The NCCPL was incorporated on July 03, 2001 to provide Independent Clearing & Settlement Services to all the three Stock Exchanges of Pakistan. The NCCPL commenced its NCSS Live operations from December 24, 2001. The Company is governed by : - National Clearing and Settlement System (NCSS) Regulations - National Clearing and Settlement System (NCSS) Regulations - NCSS Procedures - NCSS Procedures - Clearing House Companies (Registration and Regulations) Rules 2005 - Clearing House Companies (Registration and Regulations) Rules 2005 - Companies Ordinance 1984 - Companies Ordinance 1984 The NCCPL was incorporated on July 03, 2001 to provide Independent Clearing & Settlement Services to all the three Stock Exchanges of Pakistan. The NCCPL commenced its NCSS Live operations from December 24, 2001. The Company is governed by : - National Clearing and Settlement System (NCSS) Regulations - National Clearing and Settlement System (NCSS) Regulations - NCSS Procedures - NCSS Procedures - Clearing House Companies (Registration and Regulations) Rules 2005 - Clearing House Companies (Registration and Regulations) Rules 2005 - Companies Ordinance 1984 - Companies Ordinance 1984

3. NCCPL – SHAREHOLDING STRUCTURE Authorized Capital Rs. 100.00 million Issued And Paid-up Capital Rs. 63.70 million SR. # SHAREHOLDERS (Rs. 63.70 million) % OF SHARE HOLDING 01 The Karachi Stock Exchange 47.06% 02 Lahore Stock Exchange 23.53% 03 Pak-Kuwait Investment Corp. 17.65% 04 Islamabad Stock Exchange 11.76% TOTAL 100.00 %

4. FUNCTIONS OF NCCPL NCCPL provides Clearing & Settlement Services to the Karachi Stock Exchange, Lahore Stock Exchange & Islamabad Stock Exchange. It accommodates the facility of Non-Exchange transactions such as Broker-To-Broker (BTB), Institutional Delivery System (IDS) and Margin Financing (MF) to the Clearing Members (CMs). The Company provides the facility to register Unique Identification Number (UIN). NCCPL provides Clearing & Settlement Services to the Karachi Stock Exchange, Lahore Stock Exchange & Islamabad Stock Exchange. It accommodates the facility of Non-Exchange transactions such as Broker-To-Broker (BTB), Institutional Delivery System (IDS) and Margin Financing (MF) to the Clearing Members (CMs). The Company provides the facility to register Unique Identification Number (UIN).

5. FUNCTIONS OF NCCPL BTB Module provides the facility of recording Non-Exchange transactions between broker CMs of different exchanges based on underlying exchange trades. IDS facilitates recording Non-Exchange transactions between broker CMs and non-broker CMs based on underlying trades in Continues Funding System (CFS) and Regular markets. MF platform facilitates broker CMs to arrange funds from other brokers or even non-broker CMs based on their purchases. The purpose of UIN is to establish a traceable link between each trade/transaction executed by the broker on behalf of their clients or its proprietary position. BTB Module provides the facility of recording Non-Exchange transactions between broker CMs of different exchanges based on underlying exchange trades. IDS facilitates recording Non-Exchange transactions between broker CMs and non-broker CMs based on underlying trades in Continues Funding System (CFS) and Regular markets. MF platform facilitates broker CMs to arrange funds from other brokers or even non-broker CMs based on their purchases. The purpose of UIN is to establish a traceable link between each trade/transaction executed by the broker on behalf of their clients or its proprietary position.

6. MAJOR BENEFITS OF NCSS Cross Exchange Netting for both Cash & Securities for CMs who are members of more than one stock exchange. Settlement of Net Obligations directly between CMs as per undisclosed Balance Orders. All UINs are issued by the NCCPL. Cross Exchange Netting for both Cash & Securities for CMs who are members of more than one stock exchange. Settlement of Net Obligations directly between CMs as per undisclosed Balance Orders. All UINs are issued by the NCCPL.

7. Thank you Thank you ! NATIONAL CLEARING COMPANY OF PAKISTAN LIMITED 8 th Floor, Karachi Stock Exchange Building, Stock Exchange Road, Karachi – 74000 Pakistan TEL : (92-21) 246 0820-23 FAX: (92-21) 246 0827 E-Mail : lukman@nccpl.pk Website : http://www.nccpl.com.pk Website : http://www.nccpl.com.pkhttp://www.nccpl.com.pk