ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved the Growth Enterprise Market Listing Regulations to enable small and medium enterprises (SMEs), greenfield projects, not-for-profit and other companies to raise funds through capital markets.

The commission has advised Pakistan Stock Exchange (PSX) to arrange publication of new regulations in the official Gazette of Pakistan to replace existing regulations governing listing and trading of equity securities of SMEs.

The regulations designed especially to facilitate small enterprises, startups and green field companies that are aspiring to raise funds through capital markets but cannot fulfil the cumbersome conditions for listing on the main board of PSX.

Hence, in addition to the main board of PSX, the growth enterprise market (GEM) will be a second board at PSX for listing and trading of equity securities. However, the trading screen for both boards will be same.

The new board provides a more conducive regulatory environment as compared to the main board. For listing on GEM board, any public limited company having audited accounts for the last two financial years and post issue paid-up capital of at least Rs25 million is eligible.

The minimal fee for listing on GEM board is Rs50,000, that is significantly low as compared to listing on PSX main Board, where minimum listing fee is Rs200,000.

Moreover, any person licenced with the SECP as securities broker or consultant to the issue can act as adviser.

Published in Dawn, November 13th, 2019