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Karachi: Emco Industries Limited has reported the recent buying and selling of company shares by its Chief Financial Officer, Mr. Riaz Ahmad, aligning with the regulatory requirements of the Pakistan Stock Exchange (PSX).
On July 19, 2024, Mr. Ahmad purchased 6,000 shares of Emco Industries at a rate of PKR 37.958 per share, totaling PKR 227,752.12. Subsequently, on July 22, 2024, he sold the same number of shares at a lower rate of PKR 36.108 per share, amounting to PKR 216,648.54, resulting in a net loss of PKR 11,103.58.
According to information available from the Pakistan Stock Exchange (PSX), these transactions are subject to specific regulations under section 5.6.4 of the PSX Rules. The activities of buying and selling within such a short timeframe raise considerations under section 105 of the Securities Act, 2017. Although the CFO incurred a loss, thereby not necessitating the deposit of any profits with the Securities and Exchange Commission of Pakistan (SECP), the company has confirmed compliance and detailed reporting to the PSX.
The transactions will be reviewed in the upcoming board meeting, with a particular focus on any potential non-compliance with the established trading restrictions. Emco Industries has also assured that if the holding period had been less than six months and had resulted in a profit, the required profit checks would have been deposited with SECP.
This disclosure highlights the stringent oversight applied to trading activities of top executives within companies listed on the Pakistan Stock Exchange, ensuring transparency and adherence to legal and ethical standards.