Karachi: Dost Steels Limited (DSL) is currently under scrutiny following the issuance of a Risk Warning Alert (RWA) by the Pakistan Stock Exchange (PSX) for failing to comply with PSX Regulation 5.11.1.(d). According to information available from the Pakistan Stock Exchange (PSX), this non-compliance pertains to DSL's inability to pay a penalty imposed by the Exchange within the designated timeframe. The PSX, through its Notice No. PSX/N-1016 dated October 21, 2024, had initially highlighted this issue and provided DSL with a 90-day period to address the non-compliance.
Further notices, PSX/N-1266 dated December 23, 2024, and PSX/N-043 dated January 06, 2025, reiterated the urgency of the situation. DSL has been given until January 20, 2025, to settle the outstanding dues. Failing to do so will prompt further actions under PSX Regulation 5.11.3.(e), which includes the potential issuance of a compulsory buy-back directive to the company's sponsors or majority shareholders.
Even if DSL resolves the current non-compliance issue by the stipulated deadline, the company will still remain listed in the Non-Compliant Segment due to other unresolved issues. Specifically, these include suspensions of commercial production or business operations in its principal line of business for a continuous period of one year and an adverse opinion issued by its statutory auditor in the audit report, both of which fall under PSX Regulations 5.11.1.(a) and (g) respectively.
Dost Steels Limited is required to address these compliance issues to maintain its standing in the market. The ongoing situation highlights the significant challenges faced by the company and emphasizes the importance of regulatory adherence within the designated market category.