Karachi May 9 2024: In a recent development, Hascol Petroleum Limited (“HASCOL”) finds itself in the crosshairs of the Pakistan Stock Exchange (PSX) due to significant regulatory infractions.
The company, already flagged in the Defaulters’ Segment for non-compliance with PSX regulations, has failed to convene its Annual General Meeting (AGM) and submit its Annual Audited Financial Statements for the fiscal year ending December 31, 2023.
The stringent actions stem from violations outlined in PSX Regulation 5.11.1.(c) & (d), specifically targeting companies that neglect to adhere to fundamental legal obligations. Regulation 5.11.1.(c) mandates the holding of at least one AGM per annum, a requirement that HASCOL has failed to meet, leading to its placement in the Defaulters’ Segment.
Furthermore, Regulation 5.11.1.(d) necessitates the submission of annual audited accounts for the preceding financial year, another obligation overlooked by HASCOL, exacerbating its regulatory woes.
Consequently, PSX has initiated actions outlined in Regulation 5.11.2(a) and 5.11.2(b), which entail measures aimed at rectifying non-compliance. However, should HASCOL persist in its violations for two consecutive years, PSX reserves the right to suspend trading in HASCOL shares, affording the company a 90-day grace period to address the infractions.
Failure to rectify the non-compliance within the stipulated timeframe would prompt PSX to escalate actions under Regulation 5.11.2(e), potentially leading to more severe consequences for HASCOL.
This development underscores the critical importance of regulatory compliance within the corporate landscape, as companies face tangible repercussions for failing to meet their legal obligations. The future trajectory of HASCOL Petroleum Limited hinges on its ability to swiftly address these compliance issues and regain the trust of investors and regulatory authorities alike.
