Stocks Observer. com

The Karachi Stock Exchange issued suspension orders of trading in shares of four companies on Friday, making a tally of 12 companies disallowed from trading so far this year. The period of suspension was extended to a further 60 days of the following companies: Indus Polyester Company; Tariq Cotton Mills, Pak Fibre Industries and Long Term Venture Capital Modaraba. A dozen companies were suspended last year and seven the year before. From August 1988, since the process began, the bourse has put trading of 74 companies on the hold until they ‘remove the cause of suspension.’ Some investors complain that the exit route for delinquent companies runs the familiar course: placing them on the defaulters’ counter, suspension and finally delisting. The defaulters’ counter had been set up years ago so as to put to shame companies that do not comply with regulations, pertaining mainly to small investors’ rights. The action has met with success in varying degrees. The KSE has continued to justif...