Karachi: SME Leasing Limited (SLL) has been issued a compulsory buy-back directive as per the latest notice from the Pakistan Stock Exchange (PSX), following the suspension of trading in its shares due to regulatory non-compliance. The directive was issued on January 29, 2025, after SLL failed to rectify issues stemming from the cancellation of its leasing license by the Securities and Exchange Commission of Pakistan (SECP), as highlighted in PSX Notice No. PSX/N-1047 dated October 31, 2024.

According to the PSX, SLL has been unable to foresee any improvement in its operational affairs, prompting the company to request the exchange to proceed according to PSX Regulations. This has led to the issuance of a buy-back directive under Clause 5.11.3.(e), mandating that the majority shareholders provide an option for selling their shares at a price set by the exchange. Shareholders have been given a 90-day period, concluding on April 28, 2025, to execute this buy-back.

The move is part of the exchange's broader effort to address regulatory compliance issues within the designated market category. According to information available from the Pakistan Stock Exchange (PSX), the failure of SLL to meet the compliance deadline could lead to the eventual delisting of the company's shares. In the absence of compliance by the majority shareholders or sponsors within the specified timeframe, the exchange will forward the case for potential winding-up proceedings to be initiated by the SECP under the Companies Act, 2017.

This development follows a series of notifications, including PSX Notices No. PSX/N-1305 dated December 31, 2024, PSX/N-074 dated January 14, 2025, and PSX/N-099 dated January 22, 2025, which outlined the compliance deadlines. The outcome of this directive will significantly impact SLL's operational standing and its shareholders in the coming months.