September 14, 2018 (MLN): The National Clearing Company of Pakistan (NCCPL) has extended the deadline for the submission of audited certificates of Net Capital Balance (NCB) and Liquid Capital (LC) as of June 30th 2018, by 3 days.
All Broker Clearing Members (BCMs) have been instructed to submit these documents by September 17th 2018, at the latest.
A subsequent notice was issued in this regard during August 2018, where the BCMs were directed to submit the half yearly Net Capital Balance certificate and Liquid Capital Statement by September 14th 2018.
“These documents must be duly audited/verified by the Statutory Auditor of respective BCM 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 action as prescribed under ‘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 mention allocation of their Net Capital Balance (NCB) in respect of Debt Market.
NCCPL also added that in addition to the 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.
Copyright Mettis Link News