Karachi: First National Equities Limited (FNEL) announced that the Securities and Exchange Commission of Pakistan (SECP) has canceled its "Trading and Self Clearing Broker" license as per an order dated April 14, 2025. The decision was articulated following a show cause notice issued on March 1, 2024. This regulatory decision affects FNEL's ability to maintain custody of securities and customer funds, though it is permitted to operate as a "Trading Only" securities broker.

According to the SECP Order, passed by Commissioner Abdul Rehman Warraich, FNEL's license cancellation does not impose any fines or financial liabilities, nor does it impact its current business operations. The company is allowed to continue trading activities under the existing regulatory framework. FNEL had already sought conversion to a "Trading Only Broker" category on July 25, 2024, and has been in ongoing discussions with the SECP's Licensing Division since then.

The company is in the process of consulting with its legal counsel to determine whether an appeal against the SECP Order is warranted. A decision regarding any potential appeal will be communicated to the market within the specified timeframe. FNEL expects a positive outcome from the SECP regarding the granting of the Trading Only Broker license and will update the Pakistan Stock Exchange on future developments.

According to information available from the Pakistan Stock Exchange (PSX), FNEL's disclosure was made in compliance with the Securities Act, 2015, and associated regulations. The company remains engaged with regulatory bodies to ensure adherence to all prescribed standards. This development falls under the designated market category of regulated securities activities, underscoring the importance of compliance and regulatory oversight in maintaining market integrity.