KSE to de-list over 100 defaulting companies in next three to four years: Naqvi

The Karachi Stock Exchange (KSE) will be delisting, in next three to four years, over 100 listed companies currently on defaulter counter. "Out of the 630 listed companies at KSE, over 100 companies are on the default counter, or have been closed, and these companies would be de-listed from the Exchange in the next three to four years", Nadeem Naqvi, Managing Director of KSE, told Business Recorder here on Saturday.
"We want only good performing companies to remained listed at the KSE", he said, adding "There should be only those companies listed whose returns are high and they pay dividend regularly." He said that the KSE is discussing with the Securities and Exchange Commission of Pakistan (SECP) the matter of minority shareholders of the companies which have been closed.
"We are discussing this matter with the SECP and want to find a way out to save the minority shareholders'' interest in the companies which have been closed", he added. While quoting a recent research report, he pointed out that despite many ups and downs, 50 companies had paid dividends regularly in the last 11 years, while 155 companies paid dividends in nine years, out of total 11 years.
He said that the investors'' awareness is must and all investors should rely only on their own research about the companies where they are going to invest their money. "The investors should not rely on people''s advice", he said, adding that the investors should have complete information about the companies'' financial performance before investing money in the shares of any company.