PSX Issues Buy-Back Directive for Three Companies Over Regulatory Non-Compliance

Karachi: The Pakistan Stock Exchange (PSX) has issued a compulsory buy-back directive to the sponsors and majority shareholders of three companies, following their continued failure to comply with specific financial regulations. The companies have been given a deadline until November 25, 2024, to settle their dues and rectify the non-compliance issues as stipulated under PSX Regulation 5.1.1.(d).

The directive, identified as PSX Notice No. PSX/N-833 dated August 28, 2024, targets Chenab Limited, First Capital Equities Limited, and Khalid Siraj Textile Mills Limited. These firms have not met the regulatory requirements concerning the timely payment of outstanding dues to the Exchange.

Chenab Limited, listed under symbols CHBL and CLCPS for its ordinary and preference shares, respectively, has specifically failed to pay the outstanding dues owed to the Exchange within the prescribed period. Similarly, First Capital Equities Limited and Khalid Siraj Textile Mills Limited have both suspended commercial production in their principal business lines and have not paid their outstanding dues, compounding their regulatory challenges.

According to information available from the Pakistan Stock Exchange (PSX), the non-compliance has significant implications. If these companies do not resolve the issues by the designated deadline, PSX under Regulation 5.1.1.(g) may refer these cases to the Securities and Exchange Commission of Pakistan for further action, which could include penalties or additional directives.

The situation underscores the strict regulatory environment within which companies listed on the PSX operate, aiming to ensure transparency and protect investor interests by enforcing compliance with financial obligations.

The post PSX Issues Buy-Back Directive for Three Companies Over Regulatory Non-Compliance appeared first on .