Karachi: The Pakistan Stock Exchange (PSX) has imposed a fine of PKR 370,000 on Citi Pharma Limited (CPHL) for multiple breaches of disclosure and reporting obligations under Chapter 5 of PSX Regulations. The regulatory action, detailed in a public notice issued today, highlights lapses in insider trading disclosures and compliance procedures by the pharmaceutical company.
Regulatory Breaches Identified
The enforcement order, issued on May 15, 2026, cites three key violations.
These include delayed reporting of trades by relevant persons, execution of trades during closed periods, and failure to timely update the requisite information of relevant persons in the Unique Identification Number Management System (UMS) available in PUCARS.
PSX stated that the company was given an opportunity of being heard before the order was passed.
The breaches relate to Clause 5.6.4 of PSX Regulations.
Corrective Actions and Company Response
In addition to the monetary penalty, PSX has directed Citi Pharma to strengthen its internal controls.
The company must now regularly educate relevant persons about their obligations, intimate closed periods well in advance, and ensure timely updates in the UMS system.
CPHL has also been asked to present details of the trades in the next board meeting, submit board minutes to PSX, and circulate the enforcement order among board members.
The company has taken corrective measures by subsequently disclosing the pending trades and updating the UMS records.
In its response, Citi Pharma described the delay as “unintentional and procedural,” assuring that there was no intention to withhold material information from the market or the Exchange.
The company further stated that it has strengthened its internal compliance mechanism to prevent future lapses and will ensure all disclosures under Regulation 5.6.4 are made strictly within prescribed timelines.
This marks a notable regulatory action against the listed pharma firm, which has been active in the market with recent business developments.
Market observers will be watching how this notice affects investor sentiment towards the stock in the coming days.
Analysts believe such public dissemination of penalties is part of PSX’s ongoing drive to improve corporate governance and transparency on the exchange.
While the fine amount is relatively modest, the accompanying directives signal a stronger emphasis on procedural compliance.
Citi Pharma Limited has assured stakeholders of its commitment to full regulatory adherence going forward.