KSE warns non-compliant listed companies of punitive action

KARACHI: The Karachi Stock Exchange (KSE) has warned listed companies to disseminate corporate information to the exchange through Pakistan Unified Corporate Action Reporting System (PUCARS) or punitive action would be deemed appropriate against them.
Abbas Mirza, chief compliance officer of KSE, said all the listed companies and issuers of listed securities were required to disseminate all decisions of its board of directors relating to cash dividend, bonus issue, right issue or any other entitlement or corporate action and any other price sensitive information.
Pakistan Unified Corporate Action Reporting System (PUCARS) was implemented as a mandatory requirement for communicating their financial results and price sensitive and material information with effect from August 17, 2015.
"However, it has been observed that some of the listed companies and issuers of listed securities already registered with PUCARS are still not complying with the requirements for dissemination of information to the exchange through PUCARS even after the lapse of a considerable time."
Mirza said that these companies have been strictly advised to communicate all information in the manner as prescribed under the Correspondence Manual of the exchange.
"Failure to submit the required information through PUCARS will be treated as non-compliance and shall be liable for punitive action as deemed appropriate by the exchange."
Moreover, the listed companies and issuers of listed securities, who failed to join PUCARS, are once again advised to get themselves registered with the exchange, enabling them to use the same.
These companies are advised to fulfill the formalities for obtaining the "RSA SecurlD Token" from the exchange to access the system.
The exchange has also reportedly initiated inquiries into the complaints that sensitive information was being leaked by the exchange staff to various brokers. Sources said that the information regarding deals of local and foreign funds was being leaked to some brokers prior to their execution, which was affecting prices of particular scrips, as well as the credibility of the bourse.
The sources said that the exchange had initiated an in-house inquiry and abnormal or extraordinary movement in the prices and volumes of several scrips are being investigated. The officials; however, did not confirm or deny any such event.