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 the Pakistan Stock Exchange (PSX).
In a statement, the SECP said registration of eligible unlisted public companies at PSX, coupled with public dissemination of financial results, would significantly increase visibility of Pakistan’s corporate sector. This measure, it said, may motivate companies to adopt improved corporate governance practices, disclosures and documentation; and embrace a culture of increased transparency and public accountability.
The consultation paper suggests a phased implementation approach, with companies with paid-up capital of Rs. 200 million or more required to register in the first phase. Subsequently, companies with paid-up capital between Rs. 25 million and Rs. 200 million would be registered on the platform.
The platform 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 platform. 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 was finalized after input from market infrastructure institutions and has been placed on the SECP website.
Stakeholders have been requested to submit feedback to SECP by Feb. 6, 2025.