KSE to delist 18 companies

The Karachi Stock Exchange (KSE) considering the interest of the stakeholders has decided to delist 18 companies from the Exchange. The KSE has taken this action against the non-compliant / defaulting companies, committing defaults under the Listing Regulations, particularly Regulation No 30 of the Exchange, a KSE notice issued here on Tuesday said.
The cases of the companies have also been forwarded to the Securities and Exchange Commission of Pakistan (SECP) for initiating necessary action against the management / companies under the provisions of the Companies Ordinance, 1984. The Exchange initiated action against the non-compliant companies, which have been in default of various provisions of the Listing Regulations particularly non-holding of Annual General Meeting for more than two years and non-payment of the dues of the Exchange.
The Exchange had advised these companies vide notices issued on February 10 and February 15, to rectify these defaults within 90 days in accordance with the Listing Regulations and / or opt for the option of Voluntary Delisting through buy-back of shares of the minority shareholders by the sponsors / majority shareholders in accordance with the Regulation. The Exchange also forwarded the copies of the notices to the companies concerned on their addressed available with the Exchange.
On failure of the companies to rectify the defaults within the stipulated time, the Exchange again issued notice on May 15, to such companies, allowing further 30 days to rectify the defaults. The companies / management were also notified the action of delisting of companies from the Exchange under the Regulations.
The notice was also served through the newspapers on May 17, providing the companies / management, the opportunity of being heard and / or submitting the objection, if any, to the delisting in writing to the Exchange by June 14. "It is regretted that the companies failed to respond / rectify the defaults and / or opt for voluntary delisting through buy-back of shares from the minority shareholders", the KSE said.
"These companies being in continuous defaults of the Listing Regulations not only pose a serious threat to the development of capital market but also inhibit the investor confidence through lack of transparency", it said. Such companies have also deprived the minority investors of any return on investment, it added.
The Exchange considering the interest of the stakeholders has decided to delist these companies from the Exchange. These 18 companies to be delisted include Accord Textile Limited, Amin Spinning Mills Limited, AMZ Ventures Limited, Dadabhoy Insurance Company Limited, Fawad Textile Mills Limited, First Islamic Modaraba, Harum Texile Mills Limited, Indus Fruit Products Limited, Ittefaq Textile Mills Limited, Kashmir Polytex Limited, MacDonald Layton and Company Limited, Mian Muhammad Sugar Mills Limited, Mubarik Dairies Limited, Sahrish Textile Mills Limited, Shahpur Textile Mills Limited, The Ittefaq General Insurance Company Limited, The Union Insurance Company of Pakistan Limited and Zahur Textile Mills Limited. "In future no company will be allowed listing which is an associate of the defaulted company", the KSE said.-PR