November 12, 2024 (MLN): The Pakistan Stock Exchange (PSX) has issued a Risk Warning Alert (RWA) against Bela Automotives Limited (PSX: BELA) due to its continuous violation of PSX regulations.
On August 13, 2024, PSX granted the company a 90-day period, ending on November 11, 2024, to address its non-compliance issue related to the unpaid penalty imposed by the Exchange.
As BELA failed to rectify the non-compliance with this regulation, PSX triggered RWA against the company.
A Risk Warning Alert is flagged for companies placed in the Non-Compliant Segment or Winding-Up Segment due to ongoing regulatory violations.
Companies under this alert face the risk of trading suspension or delisting from the Exchange and may be subject to additional terms and conditions as specified by the Exchange.
Furthermore, BELA is now provided with 90 days' time i.e. up to February 09, 2025 to rectify its non-compliance by payment of outstanding dues, in case of failure of which, PSX may initiate action under PSX regulation of issuance of compulsory buy-back direction to the sponsors and majority shareholders.
It may also be noted that in case BELA rectifies the non-compliance of PSX Regulation within the stipulated time; it shall remain quoted on the Defaulters' Segment [to be renamed as Non-Compliant Segment or Winding-Up Segment] on non-compliance of PSX Regulation 5.11.1.(a).
Specifically, these regulations pertain to the company’s suspension of commercial production or business operations in its principal line of business for a continuous period of one year, and the issuance of an Adverse Opinion in its audit report by its statutory auditor.
The company will remain on this segment until all instances of non-compliance are fully addressed.
