July 2, 2003	Wednesday	Jumadi-ul-Awwal 1, 1424

KARACHI, July 1: The Karachi Stock Exchange on Tuesday shifted 43 companies from the regular to the defaulters’ counter.

A notice by the bourse said that show cause notices had been issued to those companies on April 20, 2000 with warning to rectify the default under Listing Regulation N. 32(1)(b), i.e. non-declaration of dividend/bonus for five years.

The exchange stated that the companies were allowed extension in time for placement on the defaulters’ counter from time to time and the last extension given to those companies was up to June 30, 2003, notified vide Notice No.KSE/N-150 dated March 31, 2003.

But the companies were said to have failed to rectify the default within the grace period. “Now, therefore, the KSE, after due consideration of the facts and circumstances and in the interest of public, in exercise of the powers vested in it under Listing Regulation No.32, has decided to place these companies on the defaulters’ counter w.e.f. Tuesday, July 1, 2003,” the bourse said.

Following companies were shifted to the defaulters’ counter on Tuesday: Financial Link Modaraba, First Interfund Modaraba, Unicap Modaraba, Unity Modaraba, National Asset Leasing Corporation, First Standard Investment Bank, Asset Investment Bank, Islamic Investment Bank, Trust Securities & Brokerage, Progressive Insurance Company (formerly, Prime Insurance Company), Ahmed Spinning Mills, Dawood Fibre Mills (formerly, Aisha Cotton Mills), Amin Spinning Mills, Asim Textile Mills, Crescot Mills, Glamour Textile Mills, Lafayette Industries Synthetics, Nazir Cotton Mills, Ashfaq Textile Mills, Itti Textiles, (Colony) Sarhad Textile Mills, Hala Enterprises, International Knitwear, Modern Textile Mills, Rashid Textile Mills, Safa Textiles, Zahur Cotton Mills, Indus Polyester Company, Kashmir Polytex, Pak Fibre Industries, Crescent Jute Products, Khairpur Sugar Mills, Dandot Cement Company, Transmission Engineering Industries, Biafo Industries, Abson Industries, Central Forest Products, Kashmir Edible Oils, Pak German Prefabs, Fateh Industries, Indus Fruit Products, UDL Industries and Climax Engineering Company. The concept of placing companies on defaulters’ counter was initiated by the KSE in 1997, when more than 100 companies were shifted from the ready board to the defaulters’ counter, for being in default of Listing Regulations. This particularly, related to Regulation No. 32, which included: stock price remaining below 50 per cent of the face value for a continuous period of three years; failure to declare dividend/bonus for five years from the date of last declarations; failure to hold AGM for continuous period of three years; companies that were in liquidation; failure in respect of payment of Annual Listing fee for a period of two years and failure to join the Central Depository System (CDS) after the company’s securities had been declared eligible securities by the Central Depository Company (CDC).