The Pakistan Stock Exchange (PSX) has suspended trading in shares of eight listed companies due to repeated failure to comply with key regulatory requirements. This enforcement action highlights PSX’s ongoing commitment to transparency, compliance, and investor protection within Pakistan’s capital markets.
The companies involved have not addressed significant breaches, including the failure to hold Annual General Meetings (AGMs), non-submission of audited annual financial statements, failure to pay PSX dues, and failure to induct their ordinary shares into the Central Depository System (CDS). These shortcomings have persisted despite multiple warnings and deadlines.
In addition to these regulatory failures, some of the suspended companies are currently facing legal proceedings initiated by the Securities and Exchange Commission of Pakistan (SECP), including winding-up petitions. For a few companies, official liquidators have already been appointed, signaling serious financial and operational difficulties.
Among the suspended companies, Regal Ceramics Limited stands out for having failed across multiple compliance areas, including AGMs, accounts submission, dues payment, and CDS share induction. The SECP has filed a winding-up petition against it and appointed an official liquidator.
Azmat Textile Mills Limited and Kaiser Arts & Krafts Limited have encountered similar compliance issues and are also subject to winding-up petitions with official liquidators in place. Pakistan Industrial & Commercial Leasing Ltd. has likewise failed in its compliance responsibilities, missing AGMs, accounts submission, dues payment, and CDS requirements.
Dadabhoy Sack Limited has suspended its commercial production, failed to pay dues, and not inducted shares into the CDS, which contributed to the trading suspension. Nina Industries Limited and Investec Mutual Fund Limited have both failed to hold AGMs, submit accounts, pay PSX dues, and comply with CDS requirements. The SECP has ordered winding-up proceedings against both.
Salman Noman Enterprises Ltd. has not only suspended its core business for over a year but also failed to pay dues, and its audit report carries a disclaimer. It too is facing a winding-up petition by the SECP.
The PSX has clarified that the trading suspension will remain in place until the companies rectify the identified defaults or for a maximum of 60 days, whichever comes first. Should the companies fail to comply within this period, they may face more severe consequences, including potential delisting from the exchange.
This action underscores the importance of corporate governance and regulatory compliance in Pakistan’s financial markets. It also demonstrates the proactive stance of the PSX and SECP in ensuring market discipline and protecting investor interests.
For investors, the suspension serves as a cautionary reminder to conduct thorough due diligence and closely monitor the compliance status of companies listed on the exchange, particularly in a challenging economic and regulatory environment.