960402

KSE fails to

compile report

on erring

listed cos

KARACHI: The Karachi Stock Exchange (KSE) authorities have delayed compilation of final report against listed companies which were not declaring dividends from the past few years.

The probe against erring companies was ordered by Prime Minister Benazir Bhutto during a surprise visit to KSE on December 20 last and the authorities had to submit a final report to her latest by March 31, 1996. A special committee headed by KSE President Arif Habib was formed in this regard in the first week of January this year.

In order to scrutinize 764 listed companies the committee had also sought assistance, of 14 brokerage houses who were supposed to report their findings about corporate behaviour within two weeks, KSE officials told PPI.

Due to violation of various sections of listing regulations including non-payment of dividends to shareholders the growth of securities was adversely being affected.

The report yet to be compiled was also aimed to help Corporate Law Authority (CLA), bourses and State Bank of Pakistan (SBP) to amend existing laws or enact new ones to regulate these listed companies.

Other non-declaration of dividends the parameters of probe also included report against loss making companies, time of holding of AGMs by companies, their despatch of annual reports, half yearly reports, dividend warrants, bonus share certificates, timely subscription of rights shares and return of transfer documents, payment of bourse dues and abuse of inter-corporate financing.-PPI