SECP consultation paper suggests RTP launch for unlisted firms

January 22, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued a consultation paper proposing the launch of a Registration and Trading Platform (RTP) for public unlisted companies at Pakistan Stock Exchange Limited (PSX).

Registration of eligible unlisted public companies at PSX coupled with public dissemination of financial results will significantly increase the visibility of Pakistan’s corporate sector.

This measure is expected to motivate companies to adopt improved corporate governance practices, disclosures, and documentation; and embrace a culture of increased transparency and public accountability.

A phased implementation approach has been suggested in the consultation paper, according to the press release issued today.

Companies with paid-up capital of Rs200 million or more will be required to register in the first phase, followed by companies with paid-up capital between Rs25mn and Rs200mn, which will be registered on RTP.

RTP provides unlisted companies with a unique opportunity to reach a much wider investor base, given the local penetration and international visibility of PSX amongst global investors and media outlets.

On gaining familiarity with the fully automated and digital capital market infrastructure, unlisted companies will find it easier to pursue listings on the PSX Mainboard or GEM board in the future.

The concept paper proposes mandatory registration of unlisted public limited companies on the RTP.

This registration would enable existing shareholders and sophisticated investors, such as high net-worth individuals, financial institutions, and corporates to trade in shares of RTP-registered companies.

It is important to note that RTP registration does not equate to formal PSX listing.

RTP-registered companies will not enjoy the benefits of being listed on PSX, nor can they raise funds from the stock market without going through the SECP and PSX approval process.

The paper is finalized after input from the market infrastructure institutions is placed on the SECP website.

Stakeholders have been requested to submit feedback to SECP by February 06, 2025.

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