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

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.