Karachi: Broker Clearing Members (BCMs) and Professional Clearing Members (PCM) have been directed by the National Clearing Company of Pakistan Limited (NCCPL) to submit their audited or reviewed liquid capital statements by specific deadlines, depending on their financial year end dates. According to information available from the Pakistan Stock Exchange (PSX), this directive aims to ensure compliance with the Capital Adequacy Requirements under the Securities Brokers (Licensing and Operation) Regulations, 2016.

Issued on August 2, 2024, via NCCPL Circular NCCPL/CM/AUGUST-24/01, the requirement stipulates that BCMs and PCM with a financial year ending on June 30 must submit their annual audited financial statements, including Liquid Capital (LC) statements, by October 31, 2024. Meanwhile, those whose financial year concludes on December 31 are required to submit their external auditor’s reviewed LC statements by September 16, 2024.

The NCCPL has warned that failure to meet these deadlines may trigger enforcement actions as outlined under Regulation 6(6) of the same regulations. Specifically, brokers failing to submit their statements and maintain the required liquid capital may see their trading facilities restricted. The clearing house will only permit trading necessary to close out open positions in a controlled environment to manage risk effectively.

In addition to these annual or semi-annual requirements, BCMs and PCM are also required to continue submitting monthly unaudited LC statements to the securities exchange and clearing house in accordance with Regulation 6(3). These submissions must be made during business hours and are subject to system adjustments within two working days following submission.

This structured timeline and the accompanying regulations underscore the PSX and NCCPL's commitment to maintaining financial stability and compliance within Pakistan’s trading and clearing ecosystem.