Karachi: First National Equities Limited (FNEL) has faced a restriction on its trading facilities by the Pakistan Stock Exchange (PSX) due to non-compliance with regulatory requirements, effective immediately. This decision comes as FNEL failed to submit its monthly Liquid Capital Statement by the due date of August 31, 2024, a critical financial disclosure required under the Securities Brokers (Licensing and Operations) Regulations, 2016.

The specific regulation in question, Clause 6(6), mandates immediate action if a securities broker, such as FNEL, does not meet the requirements for submitting statements of net capital balance and liquid capital. This clause empowers the exchange and clearing house to restrict the trading facilities of the broker, allowing only the closing of open positions in a controlled environment to protect market integrity.

According to information available from the Pakistan Stock Exchange (PSX), this enforcement is a direct response to FNEL’s lack of compliance with Clause 6(3) of the same regulations, which outlines the obligations regarding the liquid capital statement submission. The restriction will remain in place until FNEL addresses the shortfall and meets the necessary regulatory standards to resume full trading activities.

Market participants have been advised of the restrictions, which are intended to safeguard the trading environment and ensure compliance with financial reporting requirements. This action underscores the PSX's commitment to uphold regulatory standards and maintain market stability.