Dewan Automotive warned of delisting citing failure to meet regulations

The notification said that till December 31st, 2018 DWAE had been unable to make any reasonable progress towards correcting the default and failed to comply with the regulations

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LAHORE: The Pakistan Stock Exchange (PSX) on Monday warned Dewan Automotive Engineering Limited (DWAE) of being delisted from the bourse citing failure to meet the regulations.

In a notification sent to the bourse on Monday, PSX said it “intended and proposed delisting of DWAE on account of failure to rectify the default(s) of Clauses 5.11.1 (e)(g) &(l) of PSX Regulations despite a lapse of considerable time and our notice no. PSYJN-6465 dated November 30, 2018, regarding extension in the deadline for rectification of defaults.”

The notification said that till December 31st, 2018 DWAE had been unable to make any reasonable progress towards correcting the default and failed to comply with the regulations.

Consequently, the bourse in the interest of protection of investors and in line with the requirements of the exchange’s regulations will now commence the process to delist DWAE from the stock exchange, read the notification.

DWAE was unable to fulfil this clause of the PSX regulation: “Upon completion of the buy-back process of shares by majority shareholders/ sponsors of the Company or failure to comply with the compulsory buy-back directions or failure to rectify the non-compliance(s) within the timeframe specified under sub-clause 5.11.2 (e) or as otherwise specifically provided under sub-clauses to Regulation 511.1 above the Exchange shall delist such companies within 90 days through a notice in writing under intimation to the Commission.”

Moreover, the case will be forwarded to the Securities & Exchange Commission of Pakistan (SECP) for taking further action as deemed relevant under the Securities Act 2015 and Companies Act 2017, which may include winding up of the company, read the notification.