KARACHI: Clover Pakistan Limited has been placed in the defaulter’s segment by the National Clearing Company of Pakistan Limited, a notice issued by the NCCPL said on Monday.
Clover Pakistan has been placed in the defaulter’s segment effective from Monday, December 6, 2021, it added.
The placement of the company in the defaulter’s segment will make it ineligible for trading in the Securities Lending and Borrowing (SLB) market from the date it has been placed on the defaulter’s segment. However, all open SLB contracts will be released on accelerated maturity date and/or maturity date, as the case may be.
Further, the security will not be made available on the margin financing market from the date it has been placed on the defaulter’s segment. However, all the margin financing (R) transactions would be released as per the terms and conditions defined in the margin financing agreement between the participants.
“Where a Murabaha Share Financing (MSF) eligible security has been placed on the defaulter’s segment of the exchange and notified to the company, such security shall not be made available for MSF from the date of its placement on the defaulter’s segment. However, all open MSF transactions shall be settled as per the terms and conditions defined in the Murabaha Master Agreement agreed between MSF participants. Such MSF eligible security shall be eligible for MSF once it has been removed from the defaulter’s segment by the exchange,” the NCCPL notice said.
Meanwhile, the Pakistan Stock Exchange (PSX) has also announced to place Clover Pakistan on the Defaulter’s segment, saying: “It has failed to hold its one annual general meeting as per the law.”
“Upon placement of such company on the defaulter’s segment, the exchange shall only initiate actions under regulation 5.11.2 (a). However, if such company fails to hold its annual general meeting for two consecutive years, trading in shares of the company shall be suspended by the exchange and the company shall be given 90 days to rectify the non-compliance, failing which, the exchange shall initiate further action against the company, commencing from Regulation 5.11.2 (e).”
The PSX in its notice also said that the company has failed to submit its annual audited accounts for the immediately preceding financial years as per the law.
The PSX announced Clover Pakistan’s placement in the defaulter’s segment effective from December 6, 2021, adding that if the company’s defaults continue for two consecutive years, then the trading in the share of Clover Pakistan is required to be suspended under the regulation.
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