ISLAMABAD, Aug 13: The Securities and Exchange Commission of Pakistan (SECP) has sought comments and suggestions from all stakeholders on the draft Private Equity and Venture Capital Fund regulations, 2007.

An official announcement on Monday said the fund will be an unlisted closed-end unit trust fund open only to high net worth individuals and institutions due to its intrinsic nature of being a high risk asset class.

The fund will provide equity for seed/start up capital, expansion, buyout as well as turnaround although primarily to private companies, however, it can venture into privatisation deals as well.

Private equity is a distinct asset class that can play a vital role in transformation of the local economy by providing growth capital to the local corporate sector. It will unlock the hidden value of the private companies by providing capital and managerial skills for growth and expansion.

It would also assist in the turnaround of sick and badly managed companies and would help Pakistan attract foreign direct investment (FDI).

The SECP continuously strived to offer financial products to the investors, which were tailored to suit the prevailing market conditions and various segments according to their risk appetite.

The latest amendments made to part VIII-A of the Companies Ordinance 1984, through the Finance Act 2007, empowers the SECP to make regulations in relation to section 282 of the ordinance.

Accordingly, in exercise of the powers conferred by section 282 B (2) of the ordinance, the Private Equity and Venture Capital Fund regulations, 2007 have been drafted and placed on the SECP website to elicit public opinion, added the announcement.