Karachi: In a decisive move to enforce regulatory compliance, the Pakistan Stock Exchange (PSX) has announced the suspension of trading in the shares of six companies, effective from January 25, 2025. This follows PSX Notice No. PSX/N-1120 dated November 25, 2024, highlighting the companies' failure to address various defaults as per PSX regulations. The companies affected include Annoor Textile Mills Ltd, Dadabhoy Construction Technology Ltd, Hamid Textile Mills Ltd, Globe Textile Mills Ltd, Hajra Textile Mills Ltd, and Taj Textile Mills Limited.
The suspension stems from multiple regulatory defaults, with each company exhibiting lapses in compliance with the PSX regulations. Annoor Textile Mills Ltd has been cited for failing to hold Annual General Meetings, not submitting annual audited accounts, non-payment of dues to the Exchange, non-induction of its ordinary shares into the Central Depository System (CDS), and facing a winding-up petition filed by the Securities and Exchange Commission of Pakistan (SECP) in court.
Dadabhoy Construction Technology Ltd has suspended commercial production and business operations in its principal line of business, received a disclaimer of opinion in its audit report, and is also subject to SECP-initiated winding-up proceedings. Similarly, Hamid Textile Mills Ltd has been flagged for non-payment of dues, non-induction of shares into CDS, and an adverse audit report opinion.
Globe Textile Mills Ltd shares a similar fate, with added issues of suspended business operations, failure to hold Annual General Meetings, non-submission of audited accounts, and a pending winding-up petition by SECP. Hajra Textile Mills Ltd and Taj Textile Mills Limited face comparable defaults, including failure to hold Annual General Meetings, non-submission of audited accounts, non-payment of dues, and pending winding-up petitions.
According to information available from the Pakistan Stock Exchange (PSX), the decision to suspend trading in these companies' shares has been made under the authority of Sub-Section (7) of Section 19 of the Securities Act, 2015, and PSX Regulations 5.11. The suspension will remain in effect until the identified causes are rectified or for a period of 60 days from the effective date.
The Pakistan Stock Exchange operates within the designated market category of a regulated financial market, ensuring that companies adhere to strict governance and financial disclosure standards. The recent actions underscore PSX's commitment to maintaining market integrity and protecting investor interests by ensuring that all listed entities comply with regulatory requirements. This suspension serves as a reminder for companies to uphold transparency and accountability in their financial and operational practices.