The Securities and Exchange Commission of Pakistan (SECP) has approved enhancement in National Clearing Company of Pakistan Limited (NCCPL) paid-up capital to Rs 1 billion and net worth to Rs 2 billion till June 30, 2020. Sources told Business Recorder here on Tuesday that the SECP Securities Market Division has recently informed the NCCPL on the subject of determination of optimal levels of capital for the clearing house under the Regulation 6 of the Clearing House (Licensing and Operations) Regulations, 2016.
According to the SECP, the Securities and Exchange Commission of Pakistan (SECP) in exercise of powers conferred upon it under second proviso of regulation 6(1) of the Clearing House (Licensing and Operations) Regulations, 2016, has approved to enhance NCCPL's paid-up capital to Rs 1 billion and net worth to Rs 2 billion till June 30, 2020 subject to the following conditions:
Firstly, the SECP may at any point in time require NCCPL to enhance its financial resource requirement, if it is satisfied that risks associated with clearing house operations have increased due to considerable increase in market activity or due to any other reason. Secondly, the NCCPL shall, at least annually, conduct an assessment of capital requirements and operational risk assessment or engage an expert to update the analysis done by Thomas Murray Data Services (TMDS) and Institute of Business Administration (IBA). The NCCPL Board shall oversee this process and recommend to the SECP to further enhance financial resource requirements if it is identified that risks associated with clearing house operations have increased.
The SECP has also allowed distribution of cash dividend by NCCPL for the financial year ended June 30, 2017 subject to the condition that NCCPL board shall chalk out a plan to achieve the above determined financial resource requirements and submit the same to the SECP by June 30, 2018.
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