KSE issues final delisting notices to 29 defaulting firms

Some 29 listed companies, mostly from textile sector, are on the verge of delisting for defaulting on the listing regulations ranging from non-holding of the Annual General Meetings (AGMs) to non-payment of the listing fee. Karachi Stock Exchange (KSE) Friday issued final notices to the non-complying firms that if failed to rectify the defaults would be attracting the ire of both the front and apex regulators. Companies are under fire for their failure to comply with clause b, e and g of the Listing Regulation Number 30(1) that, respectively, entail the companies’ failure to hold AGM for two consecutive years, pay the annual listing fee for two years, penalty or any other dues and join Credit Default Swap (CDS). The default period for these firms ranges from 2001 to 2010.
17 companies which have been issued final notices and are facing delisting form the exchange include Almal Securities and Services Limited, Dominion Stock Fund, Harum Textile Mills, Investec Securities, Kashmir Polytex, Nina Industries, Pakistan Industrial and Commercial Leasing, Sahrish Textile Mills, Usman Textile Mills, Union Insurance Company of Pakistan, Dadabhoy Insurance Company, First Islamic Modaraba, Ittefaq General Insurance Company, Ittefaq Textile Mills, Macdonald Layton and Co, Mian Muhammad Sugar Mills and Zahur Textile Mills. “These firms are already quoted in the defaulters’ segment of the exchange and trading in their shares has been suspended,” reads a notice issued by KSE’s Deputy Managing Director, Haroon Askari Friday. He said these companies had been issued a final notice to rectify the above defaults within 90 days, up to May 10, failing which the exchange shall proceed to de-list the companies from the exchange in accordance with the listing regulations.
The cases of these companies have also been forwarded to Securities and Exchange Commission of Pakistan (SECP) which would initiate appropriate action under the Companies Ordinance, 1984 against these companies or their managements.
Also, the companies pursuance to the above listing regulation, have been advised the option of voluntary delisting through buy-back of shares of the minority shareholders by the sponsors or majority shareholders in accordance with listing regulation No 30-A. In addition, 12 other firms are faced with the danger of having suspended trading in their shares or ultimately the delisting.
These are Accord Textile Limited, Al-Azhar Textile Mills, Al-Qaim Textile Mills, Amin Spinning Mills, Fawad Textile Mills, Hashmi Can Company, Indus Fruit Products, Libaas Textile, Mubarak Dairies Limited, Shahpur Textile Mills, Zahur Cotton Mills and Amz Ventures Limited. KSE has set a 30-day deadline ending on March 12, until which these companies could rectify their defaults or brace for punitive action by the front and apex regulators. The cases of these companies, Askari said, would also be sent to SECP for initiating necessary action under the applicable company laws. “These firms are already quoted in the defaulters’ segment of KSE on account of their defaults of various natures,” deputy managing director said.