PIA Placed in PSX’s Defaulters’ Segment

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PIA Placed in PSX’s Defaulters’ Segment

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KARACHI: Pakistan International Airlines Corporation Limited (PIACL) has been placed in the Defaulters’ Segment of the Pakistan Stock Exchange (PSX) with effect from Wednesday, October 10, 2018 (today).

In its notice sent to all concerned, Pakistan Stock Exchange said that M/s Pakistan International Airlines Corporation Limited has failed to hold its Annual General Meeting and submit Annual Audited Accounts for the year ended December 31, 2017. The said defaults attracts action under clauses 5.11.1( c ) (d) of PSX Regulations.

According to these Clauses of PSX Regulations, a listed company may be placed in the Defaulters’ Segment if it has failed to hold its one Annual General Meeting as per law or it has failed to submit its Annual Audited Accounts for the immediately preceding financial year as per law.

“In this context, it is hereby informed to all concerned that in line with the requirements of Clauses 5.11.1 ( c ) and (d) of PSX Regulations, M/s Pakistan International Airlines Corporation Limited will be placed in the Defaulters’ Segment of the Exchange w.e.f. Wednesday, October 10, 2018,” the notice said.

Source: brecorder.com
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Re: PIA Placed in PSX’s Defaulters’ Segment

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According to these Clauses of PSX Regulations, a listed company may be placed in the Defaulters’ Segment if it has failed to hold its one Annual General Meeting as per law or it has failed to submit its Annual Audited Accounts for the immediately preceding financial year as per law.
PIA annual report for year 2017 not available on airline's official website.

The latest report is of 2017 third quarter.

http://web.piac.com.pk/corporate/corpor ... ports.aspx

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Re: PIA Placed in PSX’s Defaulters’ Segment

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Buying/selling of PIACL shares has been suspended at Pakistan Stock Exchange (PSX) from today after the entry of airline in defaulters segment.

PIA management has been given a deadline of three months to submit its annual financial/accounts report(s) not submitted by the airline since past two years.

https://www.express.pk/story/1372736/1/

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Re: PIA Placed in PSX’s Defaulters’ Segment

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Shares in Pakistani national carrier tumble 16 percent after bourse censure

Syed Raza Hassan

KARACHI, Pakistan Oct 10 (Reuters) -
Shares in Pakistan’s state-controlled national carrier fell 15.9 percent on Wednesday after the bourse sanctioned the airline for not complying with stock exchange rules.

In the latest blow to loss-making Pakistan International Airlines (PIA), the bourse placed the carrier on its “defaulters segment” list, citing failure to properly file accounts.

“(PIA) has failed to hold its annual general meeting and submit its annual audited accounts for the year ended December 31, 2017,” the Pakistan Stock Exchange said in a statement.

PIA’s shares were down as much as 20 percent at one point on Wednesday, but pared some of the losses to close at 4.18 rupees.

The airline, losing money and market share to Gulf-based rivals such as Etihad and Emirates, has been hit by management turmoil in recent years and a 2016 plane crash that killed 47.

The new government of Imran Khan has vowed to restructure the airline after the previous government’s effort to privatise the carrier failed.

Source: reuters.com
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Re: PIA Placed in PSX’s Defaulters’ Segment

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Speaking to Dawn News TV, PIA spokesman Mashood Tajwar said that the company had not provided the account details for one year, not two years, and they were attempting to rectify the matter as soon possible.

He added that an annual general meeting would be called very soon.

https://www.dawn.com/news/1438099

According to the rules of the Pakistan Stock Exchange (PSX), listed companies failing to submit annual audited accounts for the preceding financial year and not holding an AGM would get placed in the defaulter’s segment.

The stock exchange gives 90 days for company’s placed on the defaulter’s segment to rectify non-compliance of the rules mentioned above, otherwise, it would initiate further action against PIACL.

Also, when placed on the defaulter’s segment, “the Exchange shall only initiate actions under Regulation 5.11.2(a) and 5.11.2(b).

However, if such company fails to submit its annual accounts for two consecutive years, trading in shares of the company shall be suspended immediately by the Exchange and the company shall be given 90 days to rectify the non-compliance, failing which, the Exchange shall initiate further actions against the company commencing from Regulation 5.11.2(e),” read the notification.

A separation notification sent to the exchange by National Clearing Company of Pakistan Limited (NCCPL) said, “Where a Security that has been quoted on the defaulter’s segment of the Exchange and notified to the Company, such Security shall not be eligible for trading in the SLB Market from the date it has been placed on the defaulter segment. However, all open SLB Contracts shall be released on Accelerated Maturity Date and/or Maturity Date as the case may be.”

PIACL shares were trading at Rs4.07, down Rs0.87 (-17.51 percent) from Tuesday’s close.

Source: https://profit.pakistantoday.com.pk/201 ... r-segment/
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Re: PIA Placed in PSX’s Defaulters’ Segment

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PSX document shown on a news channel.

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Re: PIA Placed in PSX’s Defaulters’ Segment

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Placement of PIACL in Defaulters' Segment - PIACL Requests PSX to Review its Decision

Pakistan International Corporation Limited (PIACL) has filed a formal request to Pakistan Stock Exchange (PSX) to review its decision to put PIACL in Defaulters' Segment.

Based on an assurance of full compliance given to PSX in terms of holding Board of Directors meeting by the end of October followed by Annual General Meeting (AGM) by end of November 2018, PIACL is hopeful of positive response in this regard.

Source: PIA Press Release
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Re: PIA Placed in PSX’s Defaulters’ Segment

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According to news sources:

Pakistan Stock Exchange (PSX) has issued another notice to PIA in which the airline has been asked to hold Annual General Meeting (AGM) by May 22 and present quarterly financial report.

Trading of PIA shares will be suspended in case the airline fails to submit quarterly financial report. So far, the airline has failed to hold AGM and present quarterly reports.

The airline can also be added defaulter companies list, says the notice.

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Re: PIA Placed in PSX’s Defaulters’ Segment

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PIA warned of suspension in shares’ trading on financial non-disclosure

KARACHI:
Pakistan Stock Exchange (PSX) on Tuesday warned the PIA to comply with the financial disclosure laws till the mid of the current month to avert suspension of trading in its shares in the capital market.

The stock exchange advised the PIA to rectify the defaults till May 21, 2019 to avoid immediate suspension in the interest of investors.

“Failing which trading in its (PIA) shares shall be suspended w.e.f (with effect from) May 22, 2019,” PSX said in a statement. “Upon failure of the company to rectify its default within seven trading days i.e. by Friday, May 10, 2019, trading in the shares of the company shall be converted to SPOT (T + 0) settlement for the next seven days i.e. till Tuesday, May 21, 2019.”

PSX said Pakistan International Airlines Corporation Limited (PIAA) has failed to hold its annual general meeting for the year ended December 31, 2017.

“Further, the deadline for holding the AGM for the year ended December 31, 2018 is expiring today (Tuesday), which was required to be held within 120 days from the date of closure of financial year i.e. up to April 30, 2019,” the PSX said. “The non-holding of AGM and non-submission of annual audited accounts for two consecutive years attracts action of suspension of trading in its shares.”

The PSX has already placed the loss-making airline in the defaulters segment with effect from October 10, 2018 for its failure to hold AGM and submit annual and audited accounts for the year ended December 31, 2017.

In February, the Public Accounts Committee was told that cumulative losses of PIA swelled to Rs360 billion.

Loss-making state-owned enterprises have been draining on cash resources of the cash-strapped economy. Governments put such public sector enterprises on the privatisation list in the past, but couldn’t make much success due to political resistance in divesting its shares from the organisations that render more than Rs500 billion in annual losses to national exchequer, causing widening of fiscal deficit that exceeded 6.5 percent during the last fiscal year ended June 30, 2018.

The stock exchange places a listed company in the defaulters segment if it has failed to hold its one annual general meeting under a law.

“However, if such company fails to submit its annual accounts for two consecutive years, trading in shares of the company shall be suspended immediately by the exchange and the company shall be given 90 days to rectify the non-compliance, failing which the exchange shall initiate further actions against the company,” PSX said.

Source: The News
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Re: PIA Placed in PSX’s Defaulters’ Segment

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Pakistan Stock Exchange (PSX) April 30, 2019, notice:

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Re: PIA Placed in PSX’s Defaulters’ Segment

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On the advice of Securities and Exchange Commission of Pakistan (SECP), Pakistan Stock Exchange (PSX) has decided to continue/allow trading of PIA shares.

Suspension of PIA shares trading on May 22 was feared due to airline's failure to submit financial reports and hold Annual General Meeting (AGM) for shareholders.

Trading of PIA shares at PSX on May 22.

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Source: psx.com.pk

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Re: PIA Placed in PSX’s Defaulters’ Segment

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Annual report for 2017, quarterly and annual reports for 2018, and quarterly reports for 2019 remain unavailable on official PIA website.

Most recent report is for third quarter of 2017.

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Source: PIA - Corporate Reports

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Re: PIA Placed in PSX’s Defaulters’ Segment

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PIA Board of Directors meeting is scheduled to take place today.

Approval of delayed PIA 2017 annual audit report is expected at the meeting.

Pakistan Stock Exchange (PSX) had warned PIA over the delay in submission of airline's 2017 annual audit report.

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Re: PIA Placed in PSX’s Defaulters’ Segment

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PIA has informed Pakistan Stock Exchange (PSX) Limited:

* PIA Annual General Meeting will be held on August 24, 2019.

* PIA Annual Report - 2017 will be transmitted through Pakistan Unified Corporate Action Reporting System (PUCARS) at least twenty-one days before holding Annual General Meeting.

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Re: PIA Placed in PSX’s Defaulters’ Segment

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PIA no longer a defaulter

January 24, 2020

KARACHI:
The Pakistan Stock Exchange (PSX) on Friday announced that it has removed Pakistan International Airlines (PIA) from its defaulters’ segment.

The national flag carrier was placed on the list in October 2018 for failure to hold an annual meeting and submit a statement of audited accounts for the year ending December 2017.

In May 2019, the PSX had further warned PIA to comply with financial disclosure laws in order to avert suspension of trading in its shares. The company was given until May 21, 2019, to avoid immediate suspension keeping investor interests in mind.

On Friday, PSX announced that PIA has now rectified the regulatory clauses 5.11.1(c) & (d) of PSX Regulations, and “therefore its name has been lifted off the defaulters’ segment of the exchange”, with effect from Monday (January 27).

Source: Profit
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