Karachi: The Pakistan Stock Exchange (PSX) has notified the public of the immediate trading suspension of SME Leasing Limited (SLL) shares following the cancellation of its leasing license by the Securities and Exchange Commission of Pakistan (SECP). The regulatory action, detailed in a notice dated October 11, 2024, includes the cancellation effective immediately, as per the SECP order issued on October 10, 2024.
According to information available from the Pakistan Stock Exchange (PSX), the license was revoked due to SLL’s non-compliance with rule 5(6) of the NBFC Rules, which govern leasing activities. The PSX regulations mandate the placement of any company with a revoked license in the Non-Compliant Segment, necessitating this suspension.
SLL, previously listed in the Defaulters’ Segment and set to be reclassified under the Non-Compliant or Winding-Up Segment, faces stringent regulatory scrutiny. The PSX has cited regulation 5.11.1 (g), noting the adverse opinion or disclaimer of opinion by the statutory auditor as further grounds for this action. In addition to immediate trading suspension, a Risk Warning Alert will be issued under regulation 5.11.3 (d) from October 14, 2024.
Furthermore, the exchange has outlined a specific timeline for SLL to address and rectify the issues. If SLL fails to comply or rectify its non-compliance within 0and trading days from the issuance of this notice, trading suspension will extend initially until October 31, 2024. Should the company continue to fail in remedying its non-compliance, an extended trading suspension will take effect until November 01, 2024.
This decision impacts a wide range of stakeholders, including the National Clearing Company of Pakistan and the State Bank of Pakistan, which are listed as cc recipients in the notice. This move underscores the rigorous regulatory framework in place to ensure transparency and compliance in Pakistan’s financial markets.