The National Clearing Company of Pakistan, on Thursday, August 9, 2018, has directed all Broker Clearing Members (BCMs) to submit audited certificates of the Net Capital Balance and Liquid Capital of the firms as of June 30, 2018.
BCMs have been notified to submit the half yearly Net Capital Balance certificate and Liquid Capital Statement by September 14, 2018 at the latest.
“These documents must be duly audited/verified by the Statutory Auditor of the respective firm, as per the requirement of the Securities Broker (Licensing & Operations) Regulations, 2016 and should be in line with the Clarification/Guidelines/Regulations issued by the Commission,” the notification added.
Broker Clearing Members have been warned that any failure to comply with these requirements may result in regulatory actions under the ‘Regulation 6.6 of Securities Brokers (Licensing & Operation) Regulations, 2016,’ quoted as:
“In case of non-submission of statements of net capital balance and liquid capital within a time period as may be notified by the exchange, and clearing house or any shortfall in the net capital balance and/or liquid capital, either reported by the securities broker or identified by the securities exchange, clearing house or the
Commission, the securities exchange, and clearing house shall immediately restrict the trading facility of such securities broker and shall only allow it to close out the open position in a controlled environment.”
BCMs have further been directed to also mention allocation of their Net Capital Balance (NCB) in respect of Debt Market.
NCCPL also added that in addition to the half yearly audited statement of NCB / LC; BCMs shall continue to submit monthly statement of Net Capital balance (NCB) & Liquid Capital (LC) with securities exchange and clearing house as per Regulation 6.3. of the Securities Broker (Licensing & Operation) Regulations, 2016, in a timely manner.