Karachi: Huffaz Seamless Pipe Industries Limited ("HSPI") is facing increased scrutiny from the Pakistan Stock Exchange (PSX) for failing to address a series of regulatory non-compliances. The company has not paid a penalty imposed under Clause 5.21.1. of PSX Regulations, triggering further disciplinary action in line with Clause 5.11.1.(d).

HSPI has been categorized in the Non-Compliant Segment of the PSX, with trading in its shares suspended due to its failure to hold Annual General Meetings and transmit annual audited financial statements for the fiscal years ending June 30, 2023, and 2024. The non-compliance with Clause 5.11.1.(d) has been duly noted in the Daily Quotations of the Exchange.

According to information available from the Pakistan Stock Exchange (PSX), Clause 5.11.8. outlines that in instances of multiple grounds for non-compliance, the PSX will prioritize the action that initially triggered suspension or potential delisting. In this context, HSPI's sponsors and majority shareholders have been mandated, as per PSX Notice No. PSX/N-189 dated February 17, 2025, to offer all concerned shareholders the option to sell their shares by May 19, 2025. The price will be determined in accordance with Clause 5.14 of the PSX Regulations.

The company has until May 19, 2025, to comply with the buy-back directive or resolve its non-compliance issues. Should HSPI fail to meet this deadline, the PSX will recommend to the Commission that winding-up proceedings be initiated against the company, as per the Companies Act, 2017. The deadline serves as a critical juncture for HSPI to address its regulatory deficiencies and avoid further punitive measures.