Karachi: The National Clearing Company of Pakistan Limited (NCCPL) has issued a directive to all Securities Brokers (SB) and Professional Clearing Members (PCM), requiring them to submit their audited or reviewed Liquid Capital (LC) statements for the period ending December 31, 2024. This requirement, announced on February 13, 2025, aims to ensure compliance with the Securities Brokers (Licensing & Operation) Regulations, 2016, and NCCPL Regulations 2015, to maintain financial stability within the market.

The communication mandates that those SBs and PCMs whose financial year ends on June 30 must submit their external auditor-reviewed LC statements to NCCPL by March 17, 2025. Meanwhile, those whose financial year concludes on December 31 have until April 30, 2025, to provide their annual audited financial statements, including the LC statements. The exposure allowed will be based on the lower of the audited and unaudited Liquid Capital submitted, as per NCCPL Regulations 2015.

Failure to comply with these deadlines could result in enforcement action under Regulation 6(6) of the Securities Brokers (Licensing & Operation) Regulations, 2016. Non-compliance may lead to immediate restriction of trading facilities for the securities broker, allowing only the closure of open positions in a controlled environment.

According to information available from the Pakistan Stock Exchange (PSX), all SBs must continue to submit monthly unaudited LC statements in a timely manner, as stipulated by Regulation 6(3) of Securities Broker (Licensing & Operation) Regulations, 2016. Similarly, PCMs are required to submit monthly unaudited LC statements to the clearing as per NCCPL Regulations, 2015.

The NCCPL emphasizes that submissions will only be accepted during business hours, up to 5:30 PM, with adjustments in its systems occurring within two working days after submission. This process is crucial for maintaining the designated market category's financial integrity and operational efficiency.