KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Thursday directed all brokers/clearing members to submit details of net capital balance and liquid balance for the period ended June 30, 2018 by September 14.
The half yearly Net Capital Balance (NCB) certificate/ Liquid Capital (LC) statement must be duly audited/ verified by the Statutory Auditor of respective BCM as per the requirement of the Securities Broker (Licensing & Operations) Regulations, 2016 and in line with the Clarification/Guidelines/Regulations issued by the Commission, the NCCPL said in a statement.
Moreover, failure to comply with above stated requirements may result in regulatory action as prescribed under Regulation 6.6 of Securities Brokers (Licensing & Operation) Regulations, 2016, quoted: “In case of non-submission of statements of net capital balance and liquid capital within a time period as may be notified by the exchange, and clearing house or any shortfall in the net capital balance and/or liquid capital, either reported by the securities broker or identified by the securities exchange, clearing house or the Commission, the securities exchange, and clearing house shall immediately restrict the trading facility of such securities broker and shall only allow it to close out the open position in a controlled environment.”
Further, the NCCPL directed that the brokers/clearing members should also mention allocation of Net Capital Balance (NCB) in respect of Debt Market.
In addition to the half yearly audited statement of NCB / LC; BCMs shall continue to submit monthly statement of Net Capital balance (NCB) & Liquid Capital (LC) with securities exchange and clearing house as per Regulation 6.3. of Securities Broker (Licensing & Operation) Regulations, 2016, in a timely manner