Karachi August 28 2024: Pakistan Stock Exchange has directed the sponsors and majority shareholders of Chenab Limited, First Capital Equities Limited (FCEL), and Khalid Siraj Textile Mills Limited (KSTM) to buy back shares from concerned shareholders within 90 day by November 25, 2024 at a price set by the Exchange.
On May 31,2024, the exchange has issued a final notice to three companies—Chenab Limited, First Capital Equities Limited (FCEL), and Khalid Siraj Textile Mills Limited (KSTM)—for failing to comply with PSX Regulation 5.11.1.(d). Despite repeated warnings, these companies have not rectified their non-compliance, prompting the Exchange to take decisive action.
According to the PSX notice, Chenab Limited, which trades under the symbols CHBL and CLPCS (both ordinary and preference shares), failed to pay its outstanding dues to the Exchange within the stipulated deadline. FCEL has suspended its principal line of business and similarly failed to settle its dues. KSTM also ceased its business operations, did not pay the required amounts, and received an adverse opinion from its statutory auditor.
Given the persistent non-compliance, the PSX has directed the sponsors and majority shareholders of these companies to buy back shares from concerned shareholders within 90 days—by November 25, 2024—at a price set by the Exchange. If the companies fail to comply, the PSX will delist them from the Exchange and initiate legal proceedings under the relevant provisions of the Companies Act, 2017.
This move underscores the PSX’s commitment to maintaining the integrity of the market and ensuring that all listed companies adhere to the regulatory framework. Shareholders and market participants are advised to stay informed as the situation develops.
