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High Court Sindh directs PSX to remove Dewan Cement’s name from defaulter’s list

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In a court proceeding between Dewan Cement (DCL) and Pakistan Stock Exchange (PSX), the honorable court has directed the Exchange to remove Dewan Cement’s name from Defaulter’s List and any further action until advised.

Pakistan Stock Exchange made the decision of putting DCL in Defaulter’s List on Friday January 26th, advising the company “to rectify the default within Fourteen (14) trading days i.e. Monday, February 19, 2018.” PSX in it's Friday's notice also set a contingent, that if the company fails to resolve the matters before the stipulated time “trading in the shares of the company shall be suspended.”

The Honorable High Court after reviewing the legal technicalities of the said case mentioned that the plaintiffs’ (DCL) name was put in the defaulter’s list after an amendment was made in the PSX Regulation Code, despite an extension awarded to the plaintiff on 26th of July, 2017. The extension was given only until the cases were under observance in court.

Furthermore, DCL while objecting the notice mentioned in the court that, “out of the eight (8) cases of winding up filed by creditors, five (5) have been settled and only three (3) are pending …. Once the pending suits and executions are settled, the same will also take care of winding up cases pending in this court.”

The plaintiffs (DCL) also mentioned that, “if no restraining orders are passed then from Monday onwards, the Plaintiff No.1’s name (Dewan Cement Ltd.) will be put in the Defaulters Segment, which will affect the share price and consequently settlement being reached between the creditors will also be affected.”

The court after reviewing the case informed the Pakistan Stock Exchange to abstain from putting Dewan Cement’s name in the Defaulter’s Segment. The court said that, “let notice be issued to Defendants (Federation of Pakistan, Pakistan Stock Exchange, and Securities & Exchange Commission of Pakistan) for 27.02.2013. Till the next date of hearing, the Defendant No. 2 (PSX) shall not place the name of Plaintiff No. 1 (Dewan Cement) in the Defaulters Segment with effect from 29.01.2018.

As of today (29, January, 2018), Pakistan Stock Exchange informed the “name of the Company (DCL) has been shifted to the Normal Counter with immediate effect and the Exchange shall proceed further in the matter, as per the decision of the Hon’ble Court.”

Posted on: 2018-01-29T12:23:00+05:00