PECO given final 90 days to clear outstanding dues or face compulsory buy-back and possible delisting action
KARACHI: The Pakistan Stock Exchange (PSX) has issued a Risk Warning Alert (RWA) against Pakistan Engineering Company Limited (PECO) after the company failed to clear outstanding dues and rectify a key regulatory breach within the prescribed timeframe.
According to a PSX notice issued on July 15, 2026, the Risk Warning Alert took immediate effect following PECO’s continued non-compliance with Regulation 5.11.1(d) of the PSX Regulations, which relates to the non-payment of penalties imposed by the stock exchange.
The enforcement action follows a series of notices issued by the PSX on April 15, June 18, June 29 and July 7, 2026, through which the exchange repeatedly highlighted the company’s regulatory violations and provided additional time to resolve the matter.
Final 90-day deadline
Under Clause 5.11.3(d) of the PSX Regulations, PECO has been granted a final 90-day period, ending on October 12, 2026, to settle its outstanding dues and rectify the regulatory non-compliance.
The PSX warned that failure to comply within the stipulated deadline would result in further enforcement action under Regulation 5.11.3(e), which may include issuing a compulsory buy-back direction to the company’s sponsors or majority shareholders.
Risk Warning Alert explained
A Risk Warning Alert is issued for companies listed in the Non-Compliant Segment or the Winding-Up Segment that continue to violate the exchange’s listing regulations.
The alert serves as a caution to investors that such companies face heightened regulatory risks, including the possibility of trading suspension, compulsory buy-back proceedings or eventual delisting if the violations remain unresolved.
PECO to remain in Non-Compliant Segment
The PSX further clarified that even if PECO clears its outstanding dues and complies with Regulation 5.11.1(d) within the 90-day period, the company will continue to remain in the Non-Compliant Segment because of its separate failure to comply with Regulation 5.11.1(g).
According to the exchange, PECO will only be removed from the Non-Compliant Segment after rectifying all outstanding regulatory breaches in accordance with the PSX Regulations.
The latest action underscores the Pakistan Stock Exchange’s continued efforts to strengthen market discipline, enforce listing requirements and protect investors by ensuring that listed companies comply with their regulatory and financial obligations.