Karachi: The Pakistan Stock Exchange (PSX) has announced the suspension of trading for Dewan Mushtaq Textile Mills Limited (DMTM) and Huffaz Seamless Pipe Industries Limited (HSPI) following their failure to comply with PSX regulations. The two companies did not hold their Annual General Meetings (AGMs) and failed to transmit their Annual Audited Financial Statements for the fiscal years ending June 30, 2023, and June 30, 2024.

According to the notice issued on November 15, 2024, by the PSX, this non-compliance pertains to Clause 5.11.1.(b) and (c) of the PSX regulations. The trading suspension is a significant move intended to enforce regulatory compliance among listed entities on the stock exchange.

The companies have been given until February 17, 2025, to rectify these violations. Should they fail to do so, the PSX will proceed with actions under Clause 5.11.3.(e), which might include issuing a compulsory buy-back direction to the major shareholders or sponsors of the respective companies. This deadline is crucial for the companies to restore their compliance status.

According to information available from the Pakistan Stock Exchange (PSX), if the companies manage to address the regulatory breaches within the given timeframe, trading for Huffaz Seamless Pipe Industries Limited (HSPI) could be reinstated and the company may return to the Normal Counter. However, Dewan Mushtaq Textile Mills Limited (DMTM) will remain listed in the Non-Compliant Segment due to other outstanding regulatory non-compliances until all are rectified.

The textile and industrial sectors are observing the situation closely, as the outcome could impact market confidence and investor sentiment. The PSX's strict enforcement of its regulations underscores the importance of corporate governance and transparency for all listed entities.