Karachi: Bilal Fibres Limited (BILF) has been directed to undertake a compulsory buy-back of shares by July 29, 2024, due to its failure to meet the financial obligations outlined in the Pakistan Stock Exchange (PSX) regulations.

According to PSX Notice No. PSX/N-385, dated April 29, 2024, the Exchange issued a compulsory buy-back direction to the sponsors and majority shareholders of Bilal Fibres Limited for not complying with PSX Regulation 5.11.1.(d), which mandates the timely payment of outstanding dues to PSX. This direction was announced to ensure that all parties involved were adequately informed and could take necessary actions.

As the deadline approaches, BILF is obligated to resolve these compliance issues by July 29, 2024. Failure to do so could lead to more severe consequences. According to information available from the Pakistan Stock Exchange (PSX), if the company does not rectify the non-compliance within the stipulated timeframe, the PSX, under clause 5.11.3.(g) of its regulations, will refer BILF's case to the Commission. This referral could initiate winding-up proceedings against the company under the relevant provisions of the Companies Act, 2017, aiming to protect the interests of the shareholders and maintain market integrity.

This compliance notice serves as a crucial reminder to the concerned stakeholders of the seriousness of adhering to financial regulations and the potential implications of non-compliance.