Karachi: The Pakistan Stock Exchange (PSX) announced the continued suspension of trading in the shares of M/s. Shaffi Chemical Industries Limited, citing ongoing non-compliances and legal challenges faced by the company.
The PSX initially suspended trading in Shaffi Chemical Industries' shares on July 12, 2024, due to multiple regulatory breaches, including halting commercial production and failing to pay dues to the Exchange. The recent notice, PSX Notice No.PSX/N-666, details that the company has yet to rectify the issues leading to the original suspension. Notably, a winding-up petition has been filed by the Securities and Exchange Commission of Pakistan (SECP) against Shaffi Chemical in court, signaling serious financial and operational turmoil.
According to information available from the Pakistan Stock Exchange (PSX), the suspension, effective from September 13, 2024, will extend for an additional 60 days or until the company addresses the causes of the suspension. This decision leverages the powers conferred upon the Exchange under Sub-Section (7) of Section 19 of the Securities Act, 2015, and clause 5.11 of the PSX Regulations, emphasizing the regulatory framework designed to maintain market integrity and protect investor interests.
As of now, Shaffi Chemical Industries has not provided a public response or a plan to resume trading, which raises concerns about the potential long-term impact on its shareholders and the broader market. The continued suspension serves as a critical reminder of the compliance requirements essential for corporate participants in Pakistan’s financial markets.