SECP Chairman calls for transparent framework to boost IPO market

April 10, 2025 (MLN): Primary markets (IPO) are the raison d'etre for stock exchanges. A competitive, efficient, and robust framework ingrained in transparency, disclosure and investor protection is a prerequisite for a vibrant IPO market, said Akif Saeed, Chairperson, Securities and Exchange Commission of Pakistan (SECP) in a series of tweets.

“In Pakistan the term "game changer" is often used in different contexts and meanings, these proposed changes, in my personal view, are the real deal in the case of public offering space”, he added.

This statement comes as the SECP has issued draft amendments to the Public Offering Regulations, 2017, and the Public Offering (Regulated Securities Activities Licensing) Regulations, 2017, initiating a final round of public consultation.

The key proposed changes include streamlining the IPO process and revamping the book-building mechanism for wider participation.

They also involve enhancing the universe of consultants to the Issue by allowing banks and simplifying disclosure requirements for listed companies and short-term debt securities.

Additionally, the SECP aims to introduce a customized framework for REITs, GEM companies, short-term debt securities, and the foreign listing of shares of local companies.

Moreover, a full transition to e-IPO by July 1, 2025, and the shift to a digital process are also part of the proposed reforms.

These amendments aim to make capital-raising faster, fairer, and more transparent by supporting both issuers and investors through improved efficiency, inclusivity, technological innovation, and cost-effectiveness.

The SECP has invited stakeholders to submit their feedback by April 24, 2025.

Copyright Mettis Link News