48 hours for 32 brokers to clear dues

KARACHI - The National Clearing Company of Pakistan (NCCPL) has given 48 hours deadline to 32 suspended members to clear their dues in accordance with the NCCPL regulations, reliable sources told The Nation. The NCCPL suspended 32 clearing members (KSE brokers) on December 23, who failed to fulfil their financial obligations regarding the CFS. It may be mentioned here that two KSE directors were among those suspended by NCCPL, and both the directors have tendered their resignation on Tuesday. The prominent brokers, suspended by the NCCPL, are Al Hoqqani Securities and Investment Corporation (Pvt) Limited, First Capital Equities limited, Motiwala Securities (Pvt) limited, First National Equities (FNEL), Darwesh Securities and Mac Securities (Pvt) limited, sources added. According to sources, if these suspended members failed to make required payment to the NCCPL within 48 hours, they would be declared defaulters by the clearing company. Sources said that the estimated outstanding amount of the said 32 brokers was under Rs4.75b. NCCPL sources said that a deadline has given to all the 32 suspended members to clear their liabilities, otherwise, the NCCPL would take further steps according to the rules and regulations and declared them defaulters. The liquidation of the membership cards and shares of the defaulters is also an option that can be exercised by the NCCPL, sources further said. As many as 20 brokers deposited their outstanding mark-to-market losses, however, the remaining 32 stockbrokers failed to clear their outstanding in this account till Tuesday evening. It is learnt that KSE will issue a notice to the said brokers to submit their outstanding mark-to-market and other losses within 24 hours, otherwise, default proceeding will be initiated against them. It is also anticipated that the membership cards and offices of default brokers will be sold out to clear their outstanding mark-to-market losses. Meanwhile, resignations of two KSE Board directors, Dawood Jan Mohammad and Munir M. Ladha, were accepted by the Board of KSE in a meeting held on Wednesday. CFS has been particularly in the limelight due to the law suit filed by a few brokers and counter suit by some banks. Furthermore, two brokers of KSE have filed an appeal in the Supreme Court of Pakistan on Wednesday against the Singh High Court's decision.

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