KARACHI: National Clearing Company of Pakistan Limited (NCCPL) has warned brokers clearing members of trading suspension in case of non-compliance to requirement of providing net capital balance.
The NCCPL on Friday issued final notice to all brokers clearing members, saying that on behalf of request received from PSX Stockbrokers Association (PSA) all Broker Clearing Members (BCMs) are hereby notified to submit audited certificate of Net Capital Balance (NCB) and Liquid Capital (LC) as of June 30, 2018 latest by close of business September 17, 2018.
The 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.
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 below:
“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, please also mention allocation of your Net Capital Balance (NCB) in respect of Debt Market.
In addition to the 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.