Some seven companies are being delisted by the Karachi Stock Exchange as a consequence of default(s) including non-payment of the dues of the Exchange, failed to induct the ordinary shares of the company into CDS and non-holding of Annual General Meetings. In future no company will be allowed listing which is an associate of the defaulted company.
Annoor Textile Mills Limited, Data Textiles Limited, Hajra Textile Mills Limited, Karim Cotton Mills Limited, Khurshid Spinning Mills Limited, Mehr Dastgir Textile Mills Limited and Saleem Sugar Mills Limited are among the delisted companies. This is with reference to the action taken by the Exchange against the non-compliant / defaulting companies in default(s) of the Listing Regulations, particularly Regulation No 30 of the Exchange.
The companies vide notice issued on April 30, 2012 were advised to rectify the default(s) within 90 days. On failure of the companies to rectify the defaults within the stipulated time, the Exchange vide notice issued on July 31 suspended trading in the shares of the companies with the direction to sponsors / majority shareholders to buy-back the shares from the minority shareholders within 30 days ie upto August 30. The companies / management were further advised the action of delisting in case of their failure to rectify the default(s) or opt for voluntary delisting.
The notice was also served through the newspapers on September 5 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 October 1. 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. It may be noted that 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 investors' confidence through lack of transparency. Such companies have also deprived the minority investors of any return on investment. The Exchange considering the interest of the stakeholders has decided to delist these companies from the Exchange in due course of time. The cases of the companies are being forwarded to the Securities & Exchange Commission of Pakistan for initiating necessary action against the management / companies under the provisions of the Companies Ordinance, 1984.-PR
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