24 liquidating firms de-listed by Karachi Stock Exchange

The Karachi Stock Exchange (KSE) Tuesday de-listed 24 companies that have either been liquidated or are under the process of liquidation. Such bad news are logically coming to the fore given poor state of regulatory and taxation affairs at the country’s largest bourse where trading volumes over the past three years have dried up to the lowest levels thus rendering the stock market as less attractive choice for the risk-averse investors.
The said companies, half of which were defaulting on stock regulations for over a decade, since 1997, would stand de-listed from the Karachi bourse from the first of next month, February.
Prominent among the defaulting firms is a renowned Islamic bank, Islamic Investment Bank Limited, which had been enlisted at the KSE in 1990. On July 16 of 2007 the Sharia-compliant bank was found violating market regulations under 30 (1)(b)(d)(e) that cost the bank suspension of trading in its shares at the equity market.
For its permanent failure to address the cause of suspension of its shares trading, the bank was then placed on the defaulters’ segment on the 8th of July 2009 by the front regulators from KSE. Other companies de-listed by the Exchange under Section 9(4) of the Securities and Exchange Ordinance, 1969 and Regulation No 30 of the Listing Regulations of the Exchange, include at least eight textile firms, two leasing firms, three insurance firms, four modarabas and six other companies.
These include Alif Textile Industries Limited, Apex Fabrics Limited, Indus Polyester Company Limited, Mehran Jute Mills Limited, Norrie Textile Mills Limited, Rashid Textile Mills Limited, Tawakkal Garment Industries Limited and Valika Woollen Mills Limited, Dadabhoy Leasing Company Limited, InterAsia Leasing Company Limited, Delta Insurance Company Limited, Pakistan Northern Insurance Company Limited, Sterling Insurance Company Limited, Long Term Venture Capital Modaraba, Schon Modaraba, Unity Modaraba, First Dadabhoy Modaraba, Myfip Video Industries Limited, Taga Pakistan Limited, Uqab Breeding Farms Limited, Pak Ghee Industries Limited, Siftaq International Limited and Turbo Tec Limited.
“Whereas (these) companies are under process of liquidation or liquidators have been appointed or the companies have already been dissolved previously,” the KSE said on Tuesday adding “After due consideration of facts and circumstances, the Exchange… has decided to de-list the companies from the Exchange with effect from Wednesday.” Most the de-listed firms attracted the KSE ire for violating Section 30(1)(b)(d)(e)(g) of the listing regulations. The KSE notified the delisting to the Securities and Exchange Commission of Pakistan, the companies concerned and head of the Central Depository Company, National Clearing Company of Pakistan Limited, Lahore Stock Exchange and Islamabad Stock Exchange.