13 replies to this topic

[Lion Heart]

KSE warns 29 firms of delisting

Those warned included: Al-Mal Securities & Services; Dominion Stock Fund; Harum Textile Mills; Investec Securities; Kashmir Polytex; Nina Industries; Pakistan Industriel & Commercial Leasing; Sahrish Textile Mills; Usman Textile; Union Insurance Company; Dadabhoy Insurance; First Islamic Modaraba; The Ittefaq General Insurance; Ittefaq Textile Mills; MacDonald Layton & Co; Mian Muhammad Sugar Mills and Zahur Textile Mills. - File photo


KARACHI: The Karachi Stock Exchange issued warning to 13 companies on Friday “to rectify the defaults committed under the Listing Regulations within 30 days, i.e. up to March 12, failing which the exchange shall initiate action against the companies as required under the regulations.”

The actions were noted to be: “suspension of trading in their shares followed by delisting”.

The bourse said that the names of those companies would also be forwarded to the Securities and Exchange Commission of Pakistan for initiating necessary action against the companies/management under the Companies Ordinance, 1984.

The Karachi Stock Exchange noted that the companies were already relegated to the ‘defaulters’ counter of the exchange on account of defaults/non-complaints of the Listing Regulations, all pertaining to Section 30.

Those warned included: Al-Mal Securities & Services; Dominion Stock Fund; Harum Textile Mills; Investec Securities; Kashmir Polytex; Nina Industries; Pakistan Industriel & Commercial Leasing; Sahrish Textile Mills; Usman Textile; Union Insurance Company; Dadabhoy Insurance; First Islamic Modaraba; The Ittefaq General Insurance; Ittefaq Textile Mills; MacDonald Layton & Co; Mian Muhammad Sugar Mills and Zahur Textile Mills.

In a separate notice another 12 companies were cautioned against the defaults: Accord Textiles; Al-Azhar Textile; Al-Qaim Textile; Amin Spinning Mills; Fawad Textile Mills; Hashmi Can Company; Indus Fruit Products; Libaas Textile; Mubarak Dairies; Shahpur Textile; Zahur Cotton Mills and AMZ Ventures.

Various sub-sections to section 30 (1) of the Listing Regulations of which the companies were under default included: Failure to commence commercial production/business for three years from the date of formal listing; failing to hold AGM for
two consecutive years; winding-up proceedings initiated against the companies; official liquidator/liquidators appointed; failing to pay annual listing fee for two years/penalty/any other dues and the refusal of company to join Central Depository System.

The KSE also stated that the companies pursuant to the above Listing Regulation have also been advised the option of voluntary delisting through buy-back of shares of the minority shareholders by the sponsors/majority shareholders in accordance with Listing Regulation No.30 A, “if so desired”.

Many small investors interpreted the last two words “if so desired” as granting an option to delinquent companies either to
buy-back the shares or seek a quiet exit.

Given the option, would a sponsor of any company want to pay to the beleaguered small investors trapped in those companies?
The universal cry of the stock holders in such non-compliant companies is for compensation for both the loss of profit for the period the companies have refused shareholders a dividend and appropriate re-payment of their original investment

[Amin Khan]

Ys securities & services: LSE revokes membership
April 24^th, 2012.

LAHORE: The Lahore Stock Exchange (LSE) has revoked the membership of Y.S. Securities & Services (Pvt) Ltd, on account of violation of the General Rules & Regulations of the stock exchange, in order to protect the interest of investors.
LSE received complaints from investors claiming that Y.S. Securities & Services, has shut down all their branch offices without settling their accounts. The member was issued a show cause notice and was provided two opportunities of being heard, however, the nominee director of the company failed to appear before the board.