Karachi: Trading in the shares of six companies will remain suspended, as they have not yet addressed the non-compliance issues that led to their initial suspension, according to information available from the Pakistan Stock Exchange (PSX).

This decision follows PSX Notice No. PSX/N-501 issued on May 29, 2024, which outlines ongoing defaults and regulatory breaches by these entities. The companies affected include Annoor Textile Mills Ltd., Dadabhoy Construction Technology Ltd., Hamid Textile Mills Ltd., Globe Textile Mills Ltd., Hajra Textile Mills Ltd., and Taj Textile Mills Limited.

The infractions range from failure to hold Annual General Meetings, non-submission of annual audited accounts, and non-payment of dues to the Exchange, to more severe issues like the non-induction of ordinary shares into the Central Depository System (CDS) and winding-up petitions filed by the Securities and Exchange Commission of Pakistan (SECP).

In particular, both Annoor Textile Mills Ltd. and Globe Textile Mills Ltd. face winding-up petitions in court, signaling severe financial distress. Dadabhoy Construction Technology Ltd. has not only suspended its principal business operations but also received adverse opinions in its audit reports and is undergoing SECP-initiated winding-up proceedings.

According to the PSX, the suspension will extend for an additional period of 60 days effective from July 29, 2024, unless the companies rectify the causes for suspension. This action is based on the powers granted under Sub-Section (7) of Section 19 of the Securities Act, 2015, and PSX Regulations 5.11.

The continuation of these suspensions highlights the strict regulatory framework within which the PSX operates, ensuring compliance and transparency in the financial markets. Market participants are advised to take note of these suspensions and the conditions under which trading may potentially resume for these companies.