Karachi: The Pakistan Stock Exchange (PSX) has announced an extended suspension of trading in the shares of Standard Insurance Company Limited and Mohib Exports Limited due to multiple regulatory non-compliances. According to PSX Notice No. PSX/N-665, issued on July 12, 2024, the suspension will continue until the companies rectify the causes of their non-compliance or until a further period of 60 days from September 13, 2024.
Standard Insurance Company Limited has ceased commercial production and business operations in its primary line of business, in addition to failing to hold Annual General Meetings and failing to submit annual audited accounts. Moreover, the company has not inducted its ordinary shares into the Central Depository System (CDS), and its statutory auditor has issued a Disclaimer of Opinion in the audit report, indicating significant concerns about the company's financial health and governance. According to information available from the Pakistan Stock Exchange (PSX), the infractions span several areas of the PSX Regulations, specifically clauses 5.11.1.(a)(b)(c)(e)(g).
Similarly, Mohib Exports Limited faces suspension due to its failure to hold Annual General Meetings, submit annual audited accounts, and pay dues to the Exchange. The company has also not inducted its ordinary shares into the CDS, and a winding-up petition has been filed against it by the Securities and Exchange Commission of Pakistan (SECP) in court, further complicating its operational challenges. These issues pertain to clauses 5.11.1.(b)(c)(d)(e) and 5.11.2.(b) of the PSX Regulations.
The decision to extend the suspension was taken under Sub-Section (7) of Section 19 of the Securities Act, 2015, and clause 5.11 of the PSX Regulations, empowering the Exchange to enforce compliance. The ongoing non-compliance of these companies poses significant risks to investors and the integrity of the market operations.