Karachi: The Securities and Exchange Commission of Pakistan (SECP) has initiated legal proceedings for the winding-up of Salman Noman Enterprises Limited (SANE), leading to an immediate suspension of trading in the company's shares on the Pakistan Stock Exchange (PSX).
According to information available from the Pakistan Stock Exchange (PSX), the regulatory authority disclosed that it had filed a petition in the Hon'ble Lahore High Court dated September 13, 2024, signaling serious compliance failures by SANE. In response to the petition, PSX issued Notice No. PSX/N-905, implementing measures as per their regulations.
Under clause 5.11.2. (b) of the PSX Regulations, the exchange is mandated to transfer a company to the Winding-up Segment if a winding-up petition by SECP is presented in court. This procedure includes the suspension of trading of the company’s shares. As a result, SANE, which was already listed under the Defaulters' Segment for various non-compliances, will now be placed in the Winding-up Segment effective from September 16, 2024.
The non-compliances cited include the suspension of principal business operations, failure to settle outstanding dues with the exchange, and the issuance of a Disclaimer of Opinion by the company's auditors in its audit report. SECP's move comes as a final step following repeated warnings and regulatory measures aimed at ensuring compliance.
Moreover, PSX has provided SANE with a 14 trading days’ grace period to address these issues, ending on September 25, 2024. Should the company fail to rectify the non-compliances within this period, its shares will be restricted to T+0 (SPOT) trading for the following seven days, up to October 04, 2024. If non-compliance persists beyond this extension, SANE will face a full suspension of trading starting October 07, 2024.
The regulatory steps underscore the stringent oversight mechanisms in place to safeguard investors and maintain the integrity of the financial markets in Pakistan. All market participants have been advised to take note of these significant developments.