The National Clearing Company of Pakistan Limited (NCCPL) has sent a notice to Karachi Stock Exchange (KSE) and recommended to suspend the 34 brokers from the trading system, who failed to deposit their outstanding mark-to-market losses.
Sources said that the total outstanding amount of the said 34 brokers was under Rs 4.75 billion. During the trading on Tuesday, the NCCPL cut off the CFS Mk-II terminals of 54 brokers and issued notices to them to deposit their outstanding mark-to-market losses of last six sessions as the CFS market was suspended from Monday.
As many as 20 brokers deposited their outstanding mark-to-market losses, however, the remaining 34 brokers failed to clear their outstanding in this account till Tuesday evening. The NCCPL board of directors meeting was called in the evening to discuss the prevailing situation and to take a decision about the brokers, who failed to clear their outstanding.
It is learnt that KSE will issue a notice to the said brokers to deposit their outstanding mark-to-market losses within 24 hours, otherwise default proceeding will be initiated against them. Sources said that the membership cards and offices of default brokers will be sold out to clear their outstanding mark-to-market losses.
The remaining outstanding balance amount (if any) would be paid from the members protection fund. On the other hand, sources said that some brokers were also considering to file an appeal in the Supreme Court of Pakistan on Wednesday against the Singh High Court's decision.
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