Karachi Stock Exchange take action against non-compliant companies, which have been in default of various provisions of the Listing Regulations
Karachi, July 03, 2012 (PPI-OT): This is with reference to the action taken by the Exchange against the non-compliant / defaulting companies, committing defaults under the Listing Regulations, particularly Regulation No. 30 of the Exchange.
The Exchange initiated action against the non-compliant companies, which have been in default of various provisions of the Listing Regulations particularly non-holding of Annual General Meeting for more than two years and non-payment of the dues of the Exchange.
The Exchange had advised these companies vide Notices issued on February 10,2012 and February 15, 2012 to rectify these defaults within 90 days in accordance with the Listing Regulations and / or opt for the option of Voluntary Delisting through buy-back of shares of the minority shareholders by the sponsors / majority shareholders in accordance with the Regulation. The Exchange also forwarded the copies of the notices to the companies concerned on their addressed available with the Exchange.
On failure of the companies to rectify the defaults within the stipulated time, the Exchange again issued Notice on May 15, 2012 to such companies, allowing further 30 days to rectify the defaults. The companies / management were also notified the action of delisting of companies from the Exchange under the Regulations.
The Notice was also served through the Newspapers on May 17, 2012 providing the companies / management, the opportunity of being heard and / or submitting the objection, if any, to the delisting in writing to the Exchange by June 14, 2012.
It is regretted that the companies failed to respond / rectify the defaults and / or opt for voluntary delisting through buy-back of shares from the minority shareholders. It may be noted that these companies being in continuous defaults of the Listing Regulations not only pose a serious threat to the development of capital market but also inhibit the investor confidence through lack of transparency. Such companies have also deprived the minority investors of any return on investment.
The Exchange considering the interest of the stakeholders has decided to delist these companies from the Exchange. The cases of the companies have also been forwarded to the Securities and Exchange Commission of Pakistan for initiating necessary action against the management / companies under the provisions of the Companies Ordinance, 1984.
A list of the companies containing their names, the Board of Directors, the nature of defaults including the amount of dues payable by the companies is attached.
In future no company will be allowed listing which is an associate of the defaulted company.
For more information, contact:
S. Munawar Ali
Karachi Stock Exchange
Tel: (92-21) 111-001122
Fax: (92-21) 3241 0825, (92-21) 3241 5136