Minimum amount of LC: brokers given more time to ensure compliance

The Securities and Exchange Commission of Pakistan (SECP) has further extended the time period for securities brokers to ensure compliance with minimum amount of LC till March 31, 2018. Accordingly, the securities brokers licensed as Trading and Self Clearing (TSC) and having LC less than Rs 15 million but more than Rs 5 million as per an audited statement of their LC as on December 31, 2017 shall be required to ensure by March 31, 2018 to either enhance their LC to minimum Rs 15 million or shift to Trading Only (TO) category, subject to compliance with the financial resource requirements of TO category as per Securities Brokers (Licensing and Operations) Regulations, 2016.
The securities brokers licensed as TSC and having LC less than Rs 15 million but more than Rs 5 million as per audited statement of LC as on December 31, 2017 shall also be required to submit an audited statement of LC as on March 31, 2018 latest by April 30, 2018. In case an audited statement of LC of such TSC broker as on March 31, 2018 does not reflect minimum LC of Rs 15 million and the respective broker has not converted to TO category, or if the broker has converted to TO category but does not fulfill requirements for TO category as per the Regulations, the PSX shall immediately restrict the trading facility of such broker and shall only allow it to close out the open positions in a controlled environment.