SECP may allow direct listing of companies on stock exchange

Author: Agencies

The Securities and Exchange Commission of Pakistan (SECP) is considering a proposal to allow direct listing of local companies on the stock exchange – a route that’s easier than meeting rules required for initial public offerings (IPOs).

SECP Chairman Aamir Khan who proposed the idea said that the regulator is discussing the plan. If the proposal is approved, it will help companies, especially state-owned ones, looking to sell existing shares as they will not even need approvals from the regulator for the transaction in most instances, he said.

“Direct listing is a concept which is there in developed markets already,” said Khan. “It’s something on our internal drawing board right now.” The SECP is now working on making real estate investment trust launches easier. The need for a mandatory building completion certificate, seen by many investors as a hurdle, has been removed, Khan said. Pakistan has not seen any REITs after its debut in 2015. An increase in taxes stymied plans of about eight REITs.

Share
Leave a Comment

Recent Posts

  • Op-Ed

We Are Ashamed, My Quaid (Part II)

The American author John Maxwell has nicely advised leaders, “You must be big enough to…

1 hour ago
  • Op-Ed

Exploring the Spirit of Adventure

As cheers of spectators reverberate, Ravi Jeep Rally becomes more than just a sporting event…

2 hours ago
  • Pakistan

PIA Operations Resume Smoothly in United Arab Emirates

In a welcome development for travelers, flights operated by Pakistan International Airlines (PIA) in the…

7 hours ago
  • Business

RemoteWell, Godaam Technologies and Digitt+ present Top Ideas at Zar Zaraat agri-startup competition

“Agriculture, as a sector, hold the key to prosperity, food security, and the socioeconomic upliftment…

7 hours ago
  • Editorial

Wheat Woes

Months after a witty, holier-than-thou, jack-of-all-trades caretaker government retreated from the executive, repeated horrors from…

12 hours ago
  • Editorial

Modi’s Tricks

For all those hoping to see matured Pak-India relations enter a new chapter of normalisation,…

12 hours ago