Karachi: The Pakistan Stock Exchange (PSX) has announced the suspension of trading in the shares of M/s. Al-Abid Silk Mills Limited and M/s. Dewan Salman Fibre Limited, effective from January 14, 2025. This decision follows the failure of these companies to address the causes of their trading suspension as per PSX regulations.

According to PSX Notice No. PSX/N-1099 dated November 14, 2024, both companies have been non-compliant with specific regulations, namely 5.11.1.(a)(g) and 5.11.2.(a)(c). The primary reason for the suspension is the cessation of commercial production and business operations in their principal lines of business. Furthermore, auditors have issued disclaimers of opinion in their audit reports, and the Securities and Exchange Commission of Pakistan (SECP) has ordered the filing of winding-up petitions in court. Creditors have already filed such petitions, exacerbating the companies' financial difficulties.

In light of these circumstances, the PSX has decided to maintain the suspension of trading in these companies' shares until the issues are rectified or for another 60-day period starting January 14, 2025. This measure is taken under the authority granted to the Exchange by Sub-Section (7) of Section 19 of the Securities Act, 2015, and Clause 5.11 of the PSX Regulations.

According to information available from the Pakistan Stock Exchange (PSX), the decision underscores the regulatory body's commitment to maintaining market integrity and protecting investor interests. The designated market category for these companies will remain unchanged until further notice.

Investors and stakeholders are advised to note this development for record purposes, as the PSX continues to monitor the situation closely.