SECP Proposes Simplified Venture Capital Framework to Boost Startup Investment
The Securities and Exchange Commission of Pakistan (SECP) has forwarded the draft Venture Capital Bill to the Board of Investment (BOI) for consultation, proposing a simplified regulatory framework aimed at expanding formal investment opportunities for startups and technology companies.
According to the SECP, formal access to venture capital remains limited for startups and technology companies in Pakistan, restricting their ability to secure investment needed for growth.
The proposed legislation seeks to bring venture capital activities into the formal financial system and create greater opportunities for local startups to raise capital.
The draft law proposes a simplified regulatory framework for venture capital funds and fund managers, including an easier licensing and registration regime for venture capital funds. The SECP said the framework is intended to facilitate the development of the venture capital market while providing startups with greater access to investment.
SECP Chairman Dr Kabir Sidhu said the availability of venture capital was essential for the growth of emerging startups. He added that the proposed legislation would support startup development, attract new investment and create employment opportunities.
The SECP and BOI will hold public consultations with stakeholders on the proposed Venture Capital Bill. Following the consultation process, the draft legislation will be forwarded to the government for consideration and legislation.
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