ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued a consultation paper on areas of improvement in the public offering regime to foster capital formation.

The requisite regulatory amendments will be finalised after receiving public feedback and stakeholder consensus by Sept 20.

The paper examines the supply and demand aspects that energise the capital formation ecosystem.

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Supply-side measures focus on enabling a conducive regulatory environment for businesses/issuers to raise funds smoothly and cost-effectively within a minimum time.

The paper has suggested digital solutions by adopting technology while remaining consistent with the requirements of the parent law under the Securities Act 2015. The concept paper has been uploaded to the SECP website.

On the demand side, the paper suggests measures to improve the overall investor journey by enabling better-informed decision-making through enhanced disclosures and increased transparency, facilitating more efficient price discovery, and enhancing existing investor protection measures.

The suggested improvements have been categorised into nine areas, including the consultant to the Issue and its Role, IPO Pricing Public Offering and Listing Conditions, New Product for Capital Formation, IPO Approval Timelines and Documentation Requirements, Disclosure Requirements, Public Offering Regime for GEM Board, Post IPO matters, Digitisation and IPO Outreach.

The SECP has said that the paper would help make capital formation easier for businesses, adding that efficient and cost-effective capital formation is a game changer for growing businesses and the economy.

The paper covers potential areas of improvement identified based on a holistic review of the regulatory regime, international practices, evolving technology and suggestions received from the market.

Published in Dawn, September 7th, 2024