Pakistan Engineering Co. (PECO) Stays Out of Compulsory Buyback While Paying Penalty Cheque – Mettis Global

Pakistan Engineering Company Limited (PSX:PECO) has evaded immediate action from the Pakistan Stock Exchange (PSX) following its submission of a penalty cheque, with the exchange deferring compulsory buy‑back orders to its majority shareholders and sponsors pending clearance of the payment.

Should the firm fail to resolve the non‑compliance, PSX intends to issue buyback directions to the sponsors who currently hold majority control.

Provided that PECO remedies the issue, the Risk Warning Alert will be lifted, though the company will remain listed in the Non‑Compliant Segment.

In a formal notice, PSX references its prior Notice No. PSX/N‑882 dated July 14, 2026, which had imposed a risk warning alert on PECO for failing to remit the penalty mandated by Clause 5.21.1 of the PSX regulations within the required timeframe.

The exchange observed that PECO had made progress in addressing its non‑compliance with Clause 5.11.1(d) of the regulations by promptly submitting the cheque.

Consequently, the exchange is withholding further enforcement under Clause 5.11.3—specifically the issuance of buyback directions under Clause 5.11.3(e)—until the cheque is settled.

The exchange also warned that the continued presence of PECO in the Non‑Compliant Segment is governed by Clause 5.11.1(g) and urged all interested parties to observe this provision.

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