Karachi: Huffaz Seamless Pipe Industries Limited (HSPI) has been issued a compulsory buy-back directive following its failure to comply with regulatory requirements set by the Pakistan Stock Exchange (PSX). The company has been given a deadline of May 19, 2025, to address these issues, which include the failure to hold Annual General Meetings and to transmit annual audited financial statements for two consecutive fiscal years ending June 30, 2023, and June 30, 2024.

According to a notice from the PSX, dated February 17, 2025, HSPI's sponsors and majority shareholders have been instructed to rectify these non-compliances or adhere to the buy-back directive. A subsequent reminder was issued on April 21, 2025, emphasizing the impending deadline.

Failure to meet the compliance deadline will result in the PSX referring the matter to the Securities and Exchange Commission of Pakistan. This could lead to winding-up proceedings against HSPI under the provisions of the Companies Act, 2017, as stipulated in clause 5.11.3.(g) of the PSX Regulations.

According to information available from the Pakistan Stock Exchange (PSX), the regulatory action stems from HSPI’s continuous default on key regulatory obligations, a situation that has prompted this decisive measure to protect stakeholder interests.

The designated market category for HSPI remains under scrutiny as the deadline approaches. The outcome of this directive will be closely watched by industry observers, given the potential implications for the company's operational continuity.