Karachi: Trading in the shares of Mubarak Textile Mills Limited will continue to be suspended due to unresolved regulatory non-compliances. The suspension, initially detailed in Pakistan Stock Exchange (PSX) Notice No.PSX/N-514 on May 31, 2024, stems from various issues including halted production and adverse financial audits.

The company has failed to address the cessation of commercial production and business operations, as mandated by clauses 5.11.1.(a) and (g) of the PSX Regulations. Furthermore, the statutory auditor has issued an adverse opinion on the financial statements of the company, highlighting significant discrepancies. A winding-up petition has also been filed against Mubarak Textile Mills by the Securities and Exchange Commission of Pakistan (SECP), compounding the company’s legal and operational troubles.

According to information available from the Pakistan Stock Exchange (PSX), the decision to prolong the suspension was made using the powers vested under Sub-Section (7) of Section 19 of the Securities Act, 2015, coupled with clause 5.11 of the PSX Regulations. The suspension will remain in effect until the company rectifies the causes of suspension or for another 60-day period starting from August 1, 2024.

This ongoing suspension serves as a compliance measure, ensuring that the governance and operational standards set forth by the PSX are maintained and that investor interests are safeguarded.