KARACHI: The Karachi Stock Exchange has delisted seven companies as a consequence of defaults including non-payment of the dues of the KSE, failing to induct ordinary shares of the company into CDS and non-holding of Annual General Meetings, a KSE release said on Thursday.
The companies vide notice issued on April 30, 2012 were advised to rectify the defaults within 90 days. On failure of the companies to rectify the defaults within the stipulated time, the KSE vide notice issued on July 31, 2012 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 i.e. up to August 30, 2012.
The companies / management were further advised the action of delisting in case of their failure to rectify the defaults or opt for voluntary delisting, the KSE release said.
The notice was also served through the newspapers on September 5, 2012 providing the companies / management, the opportunity of being heard and / or submitting the objection, if any, to the delisting in writing to the KSE by October 1, 2012.
“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 KSE 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. “In future no company will be allowed listing which is an associate of the defaulted company,” KES release said.
Annoor Textile Mills Limited, Data Textiles Limited, Hajra Textile Mills Limited, Karim Cotton Mills Limited, Khurshid Spinning Mills Limited and Mehr Dastgir Textile Mills Limited.