Karachi: Three companies have been directed to offer a buy-back option to their shareholders after failing to rectify non-compliance issues within the stipulated timeframe. The PSX issued notices to Chenab Limited, First Capital Equities Limited, and Khalid Siraj Textile Mills Limited, outlining the failure to clear outstanding dues and other regulatory breaches.
As of May 31, 2024, PSX had granted a 90-day period ending on August 28, 2024, for these companies to settle their dues under Regulation 5.11.1.(d). However, the deadline has passed without any resolution from the companies involved. In response, the PSX, on August 28, 2024, enforced clause 5.11.3.(e) of its regulations, requiring the sponsors or majority shareholders to initiate a buy-back of shares from all concerned shareholders within the next 90 days, ending on November 25, 2024. The price of these shares will be determined by the Exchange as per clause 5.14 of the PSX Regulations.
Should the companies or their major shareholders fail to adhere to this buy-back directive by the specified deadline, or if they continue to ignore their obligations to rectify the breaches, PSX will recommend the initiation of winding-up proceedings against these entities under the Companies Act, 2017, to the Commission.
According to information available from the Pakistan Stock Exchange (PSX), this regulatory action underscores the Exchange's commitment to enforce compliance and protect the interests of the investing public. The delisting of the companies will proceed through a formal notice under intimation to the Commission if the buy-back process completes successfully within the designated timeframe. All stakeholders are advised to take note of these developments and the potential implications for their investments.