ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) proposed launch of a Registration and Trading Platform (RTP) for public unlisted companies at Pakistan Stock Exchange Limited (PSX).
In this regard, the SECP has issued a consultation paper on Wednesday.
The SECP proposed that the registration of eligible unlisted public companies at PSX coupled with public dissemination of financial results will significantly increase 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, companies with paid-up capital of Rs 200 million or more will be required to register in first phase, following which, companies with paid-up capital between Rs 25 million and Rs 200 million will be registered on RTP.
To govern the operations of RTP Market, a new chapter namely “Regulations Governing Registration and Trading of Public Unlisted Companies on Pakistan Stock Exchange” will be inserted into the PSX Rule Book.
Further, this market would be available for delisted companies as well if they wish to remain registered with PSX.
The RTP provides unlisted companies 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 Main board or GEM board in future.
The concept paper provides 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 finalized after input from the market infrastructure institutions is placed on the SECP website. Stakeholders have been requested to submit feedback to the SECP by February 06, 2025, the SECP added.
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