Karachi: Trading in shares of Al-Abid Silk Mills Limited and Dewan Salman Fibre Limited will remain suspended, the Pakistan Stock Exchange announced today. This decision extends an initial suspension detailed in PSX Notice No. PSX/N-669 issued on July 15, 2024.
Both companies have failed to address the reasons for suspension cited earlier this year. Al-Abid Silk Mills Limited and Dewan Salman Fibre Limited have ceased commercial operations in their principal lines of business, leading to significant regulatory scrutiny. Auditors for both companies 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 also filed winding-up petitions against the companies.
According to information available from the Pakistan Stock Exchange (PSX), the continued suspension is in line with PSX Regulation 5.11, which mandates the suspension of trading for companies that have halted principal business operations or have significant auditing discrepancies. The Exchange has exercised its authority under Sub-Section (7) of Section 19 of the Securities Act, 2015, to extend the suspension period.
The trading of shares for both companies will be on hold until the causes for suspension are rectified, or for another 60-day period starting from September 16, 2024, whichever is earlier.