The Pakistan Stock Exchange (PSX) has issued a “Risk Warning Alert” for Bela Automotives Limited (BELA) following the company’s failure to address a regulatory non-compliance issue within the 90-day deadline set earlier this year. The PSX announced this development in a notice released on Tuesday.
BELA was initially given until November 11, 2024, to pay a penalty and resolve issues under PSX Regulation 5.11.1(d). However, the company did not meet this requirement, failing to pay the penalty imposed by the Exchange within the specified timeframe. “In this context, it is hereby informed to all concerned that BELA has failed to rectify the non-compliance of PSX Regulation 5.11.1(d) within the stipulated time,” the PSX stated.
The Exchange explained that BELA’s non-compliance involves unpaid penalties, putting the company at risk of further sanctions. This alert highlights BELA’s ongoing regulatory violations and serves as a warning that it may face trading suspension or delisting if the issues are not resolved.
BELA now has an additional 90 days, until February 9, 2025, to pay the outstanding dues. Failure to do so could lead to further action, including a compulsory buy-back direction requiring BELA’s main shareholders to repurchase shares.
Even if BELA resolves this issue, it may still remain listed in PSX’s “Non-Compliant Segment” or “Winding-Up Segment.” This status would indicate ongoing non-compliance related to halted business operations and adverse audit reports until all regulatory issues are addressed.
The PSX notice further clarified, “It may also be noted that in case BELA rectifies the non-compliance of PSX Regulation 5.11.1(d) 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) and (g) i.e. it has suspended commercial production/business operations in its principal line of business for a continuous period of one year and its statutory auditor has issued an Adverse Opinion in its audit report, until rectification of all non-compliances.”
