Karachi, February 26, 2026: The Pakistan Stock Exchange (PSX) has taken enforcement action against Dewan Farooque Motors Limited (DFML) for violations of disclosure and reporting obligations, following due process and the issuance of an enforcement order dated January 23, 2026.
In a notification released on Thursday, the PSX said DFML was found non-compliant with key regulatory requirements, including Clause 5.6.4 of the PSX Regulations, which relates to delayed reporting of trades executed by a substantial shareholder. The company also failed to timely update the requisite information of relevant persons in the UIN Management System (UMS) available in PUCARS, as required under a PSX notice issued on July 31, 2018.
Enforcement Actions and Directions
As part of the disciplinary action, PSX imposed a fine of Rs55,000 on DFML and issued several directives to strengthen compliance. These include ensuring timely and accurate updates of relevant persons and substantial shareholders in the UMS, establishing a mechanism to educate substantial shareholders on their disclosure obligations, and presenting trade details in the subsequent board meeting.
PSX further directed DFML to submit extracts of board meeting minutes through PUCARS using Form 30, strictly follow all PSX notifications regarding regulatory compliance, and circulate a copy of the enforcement order among board members for information and review.
Corrective Measures by DFML
DFML has since taken corrective steps, including the public disclosure of the delayed trades, ensuring timely reporting of subsequent transactions, and updating the required information in the UMS.
In its response, DFML stated that the substantial shareholder had reported the trades on time, but the company’s management faced delays due to heavy workload while finalizing group accounts. The company termed the lapse as inadvertent and assured PSX of strict compliance with all applicable regulations going forward.
The enforcement action underscores PSX’s commitment to maintaining transparency, accountability, and strict regulatory compliance in Pakistan’s capital markets.