Islamabad
\nThe Securities and Exchange Commission of Pakistan (SECP) has approved amendments to the public offering regime.
\nThe revised framework, finalized after wide-ranging stakeholder consultations, is designed to enhance competition, leverage technology, improve transparency, and introduce a more robust and inclusive price discovery mechanism in the capital market.
\nThe public offering regime\u2014comprising the Public Offering Regulations, 2017 and the Public Offering (Regulated Securities Activities Licensing) Regulations, 2017, governs the public offering of equity securities, debt instruments, and units of Real Estate Investment Trust (REIT) Schemes.
\nThe amendments aim to address both demand- and supply-side challenges for initial public offerings (IPOs), eliminate duplication in listing and prospectus applications, and facilitate issuers in achieving faster and more cost-efficient access to capital markets.
\nKey changes include the introduction of a more transparent price discovery mechanism through wider investor participation by replacing the single book runner with the concept of \u201cEligible Participant.\u201d
\nThis allows securities brokers, mutual funds, and banks to submit bids directly during book building. The minimum bid amount has been increased from Rs. 1 million to Rs. 2 million.
\nThe Consultant to the Issue (CTI) is now empowered to determine the price band using appropriate valuation models, with justification to be disclosed in the Prospectus.
\nThe requirement for 100 percent book building has been withdrawn to encourage independent underwriters\u2019 participation in the retail IPO portion. A new clawback provision permits up to a 10% increase in retail allocation in case of oversubscription by retail investors.
\nThe role of CTI has been strengthened to ensure more rigorous evaluation of issuers and offering documents. Banks and DFIs are permitted to act as CTIs for equity offerings.
\nIf a bank\/DFI fails to establish a separate subsidiary for the CTI function within five years, it may only act as CTI in consortium with another securities broker licensed as a CTI.
\nSecondary offerings and public issuance of debt are facilitated through rationalized disclosures and optional CTI appointments.
\nA standardized due diligence certificate format has also been introduced.
\nTo broaden the investible universe, a separate chapter has been added for REIT offerings and a framework introduced for general public participation in GEM Board listings. Amendments also include a revised process for approval of supplement to the prospectus in shelf registration and provide a framework for issuance and listing of equity securities outside Pakistan.
\nTo promote transparency and improve digital access, amendments have been made to strengthen disclosure requirements, mandate the use of QR codes, allow electronic signatures, facilitate online filings through the PRIDE portal and discontinue physical applications from September 1, 2025
\nThese amendments reaffirm SECP\u2019s commitment to strengthening capital markets, fostering capital formation, and promoting a more efficient, inclusive, and technology-driven public offering regime in Pakistan.<\/p>\n","protected":false},"excerpt":{"rendered":"
Islamabad The Securities and Exchange Commission of Pakistan (SECP) has approved amendments to the public offering regime. The revised framework, finalized after wide-ranging stakeholder consultations, is designed to enhance competition, leverage technology, improve transparency, and introduce a more robust and inclusive price discovery mechanism in the capital market. The public offering regime\u2014comprising the Public Offering …<\/p>\n","protected":false},"author":4,"featured_media":76709,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-83926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/83926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/comments?post=83926"}],"version-history":[{"count":1,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/83926\/revisions"}],"predecessor-version":[{"id":83938,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/83926\/revisions\/83938"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media\/76709"}],"wp:attachment":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media?parent=83926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/categories?post=83926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/tags?post=83926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}