Chashma Sugar Mills Limited Reports Share Purchase by Director

Karachi: Chashma Sugar Mills Limited has disclosed a significant transaction involving Mr. Abbas Sarfaraz Khan, a non-executive director of the company, according to a recent filing with the Pakistan Stock Exchange. On August 26, 2024, Mr. Khan purchased 3,000 shares of the company at a rate of Rs. 50.83 per share, through the Central Depository Company (CDC) in the ready market.

The transaction is noteworthy as it involves a key figure within the company and represents a substantial financial commitment in Chashma Sugar Mills’ shares. The shares were acquired in a formal transaction and are held in electronic form, indicating a modern approach to shareholding which is typical in today’s corporate environment.

According to information available from the Pakistan Stock Exchange (PSX), all such transactions by directors, CEOs, or significant shareholders must be duly reported and are subject to rigorous oversight. This purchase has been duly noted for presentation and review in the subsequent board meeting of the company. This procedure ensures transparency and compliance with PSX regulations, specifically under clause No. 5.6.1.(d), which governs such disclosures.

Furthermore, the company has confirmed adherence to the holding period stipulated for such transactions. If the shares are sold within six months of purchase, the profit from such transactions is required to be surrendered, as per Section 105 of the Securities Act, 2015. This rule is designed to discourage speculative trading by insiders and to maintain market integrity.

The company has also assured that if the transaction falls within this six-month window, the requisite amount will be deposited with the Securities and Exchange Commission of Pakistan (SECP), further highlighting the regulatory framework guiding such activities.

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