Karachi: SME Leasing Limited (SLL) has been issued a compulsory buy-back direction following a failure to rectify non-compliance issues, as per a notice by the Pakistan Stock Exchange (PSX). The company is required to address these issues by April 28, 2025, or face further action.

The directive, referenced in PSX Notice No. PSX/N-129 dated January 29, 2025, was issued due to SLL's continuous failure to comply with PSX Regulation 5.11.1.(h). This regulation pertains to the cancellation of SLL's leasing license by the Securities and Exchange Commission of Pakistan (SECP).

According to information available from the Pakistan Stock Exchange (PSX), the sponsors and majority shareholders of SLL must either rectify the non-compliance or adhere to the buy-back direction by the given deadline. Failure to do so will result in PSX referring the case to the SECP under clause 5.11.3.(g) of the PSX Regulations. This referral would initiate winding-up proceedings against SLL under the Companies Act, 2017.

The development is significant within the designated market category, as it highlights regulatory compliance issues that can lead to severe consequences for companies. The outcome of this case could serve as a precedent for similar compliance matters in the future.