Karachi: Three companies listed on the Pakistan Stock Exchange (PSX) are on notice to rectify non-compliance issues by August 28, 2024, related to outstanding dues and operational disruptions. Chenab Limited, First Capital Equities Limited, and Khalid Siral Textile Mills Limited have been highlighted for not meeting financial obligations within the prescribed timeframe, with potential further actions looming if they fail to comply.

In May 2024, PSX issued Notice No. PSX/N-520, granting a 90-day period for these companies to settle their outstanding exchange dues, as stipulated under PSX Regulation 5.11.1.(d). A follow-up notice, PSX/N-731, issued in July 2024, reemphasized the compliance deadline. According to information available from the Pakistan Stock Exchange (PSX), failure to address these issues could lead to significant regulatory consequences under subsequent provisions of PSX Regulation 5.11.3.(d).

Chenab Limited, listed both for its ordinary shares (CHBL) and preference shares (CLCPS), has not paid the dues required by the Exchange. Similarly, First Capital Equities Limited (FCEL) and Khalid Siral Textile Mills Limited (KSTM) have both suspended commercial production in their principal business lines, in addition to failing to meet their financial obligations to the Exchange. Notably, KSTM has also received an Adverse Opinion from its statutory auditor.

Should these companies address the non-compliance issues by the deadline, the regulatory outcomes will differ. Companies at serial numbers 2 and 3 will remain in the Defaulters’ Segment, soon to be renamed as Non-Compliant or Winding-up Segment. Conversely, should Chenab Limited rectify its non-compliance, it will be transferred to the Normal Counter of the Exchange, contingent upon fulfilling other relevant regulatory requirements.

Stakeholders and investors are advised to monitor these developments closely, as the deadline approaches and the companies’ statuses could impact market perceptions and investor decisions.