Karachi: The National Clearing Company of Pakistan Limited (NCCPL) has issued a notice to all Securities Brokers (SB) and Professional Clearing Members (PCM), requiring the submission of audited or reviewed liquid capital statements by specific deadlines, in compliance with the Securities Brokers (Licensing and Operation) Regulations, 2016.

Securities Brokers and PCM whose financial year ends on June 30 are required to submit their annual audited financial statements, including Liquid Capital (LC) statements, to the NCCPL by October 31, 2024. For those whose financial year concludes on December 31, the deadline for submitting externally reviewed LC statements is set for September 16, 2024. This regulatory requirement ensures that brokers maintain sufficient liquid capital to support their operations and meet potential financial obligations.

In addition to annual submissions, the NCCPL has introduced provisions for SBs interested in allocating a portion of their LC for debt market trading. These brokers must notify the NCCPL of the allocated values, adhering to the guidelines outlined in the NCCPL regulations 2015. According to information available from the Pakistan Stock Exchange (PSX), this measure is intended to enhance market liquidity and stability by ensuring that brokers have adequate capital to cover their market activities.

The notice also specifies that non-compliance with these submission timelines could lead to enforcement actions, including the restriction of trading facilities for non-compliant brokers. Specifically, brokers failing to meet the deadlines may only be permitted to close out open positions in a controlled environment, a measure aimed at protecting market integrity and preventing financial instability.

Furthermore, Clearing Members are required to continue submitting monthly unaudited LC statements to both the securities exchange and clearing house, ensuring ongoing compliance with financial regulations.

The NCCPL has emphasized that submissions will only be accepted during business hours, and adjustments in the NCCPL systems following these submissions will be completed within two working days, streamlining the process and ensuring timely updates to brokers' capital records.