KARACHI, July 3: The Karachi Stock Exchange announced on Tuesday that in future listing would not be allowed to any company which is an associate of a defaulter company.
The bourse also unveiled a list of 18 companies which the exchange said it had decided to delist.
Market watchers said that while delisting has been an ongoing process, the significant feature of the list of companies prepared and announced by the Exchange on Tuesday was that alongside the name of companies, the bourse had also put up names of companies’ board of directors.
The exchange had started the process of separating the erring companies, particularly in regard to Section 30 of the Listing Rules of Exchange and putting them up on a separate ‘defaulters’ counter’.
The aim was to put such companies to shame. Many companies corrected the wrongs and got themselves shifted from the defaulters counter back to the ready board.
Yet, such an act did not meet with complete success. The latest move by the exchange on Monday of revealing the names of directors of the companies under default and to be de-listed, appears to be in line with the disclosures by commercial banks of the names of directors of companies, who fail to repay loans secured from banks.
A market watcher said that it was the least that the Exchange can do to those who rob small investors of their hard earned money.
The KSE stated on Tuesday that the case of companies to be delisted has been forwarded to the SECP for initiating necessary action against management/companies under the Companies Ordinance, 1984.
The 18 companies with the names of directors and the defaults committed, reported on Monday include those of: Accord Textiles; Amin Spinning Mills; AMZ Ventures; Dadabhoy Insurance Company; Fawad Textile Mills; First Islamic Modaraba; Harum Textile Mills; Indus Fruit Products; Ittefaq Textile Mills; Kashmir Polytex; MacDonald Layton & Co; Mian Mohammad Sugar Mills; Mubarik Dairies; Sahrish Textile Mills; Shahpur Textile Mills; Ittefaq General Insurance; The Union Insurance Company of Pakistan and Zahur Textile Mills.