Banking

PSX Introduces SME Board To Help SMEs Raise Equity Capital

Pakistan Stock Exchange (PSX) is in process to introduce a SME Board. The new platform will help raise equity capital for SMEs to fulfill their need to develop and expand their business.

There are certain eligibility criteria for registering in the SME Board. A public organization with more than Rs25 million and less than Rs200 million post issue paid up capital can register at the SME Board.

PSX has made sure that the enlisting process for SME Board is kept simple and easy. This will help to promote and encourage the SMEs to get registered at the SME Board. Moreover, PSX has also decreased the listing price and has set the initial registration cost to Rs50,000. Alongside, PSX have taken different steps to ensure the protection and safety of the investors.

It has also defined a capital lock-in period for sponsor’s shareholding. Subsequently, sponsor’s entire shareholding in the listed SME would be preserved for a year. Furthermore, the sponsors have to preserve at least 25% of their paid capital for the next two years.

The SMEs are required to organize a periodic financial statement and get them reviewed by a QCR rated Chartered Accountant Company. It is also important for the SMEs to show the real face and legal status of their business to financier.

Also Read: SBP encourages SMEs by rescheduling spread rates at 4%

PSX and GBCCI inked an MoU

To build a cooperative and collaborative relation, PSX has retained a Memorandum of Understanding (MOU) with Gilgit Baltistan Chamber of Commerce and Industry (GBCCI). As a result, the MoU will allow SMEs to access equity funds in the region of Gilgit Baltistan.

The MoU was signed by President of GBCCI Mr. Imran Ali, and PSX Regional Incharge of Islamabad Mr. Asghar Abbas Naqvi. Attending the signing ceremony were Regional Head Lahore Mr. Sarmad Hussain, Regional Head Islamabad Mr. Asghar Abbas Naqvi, Head of Special Projects Mr. Muhammad Abdullah, Manager Operations Ms. Asmaa Saleem Malik, and Officer Special Projects Mr. Imran Lakhani.

Quick Read: PlanX and SMEDA collaborate to promote startup culture in Pakistan

Holding awareness sessions

To promote the SME Board, PSX also held an awareness session. Mr. Mir Ghazanfar Ali Khan, the Governor of Gilgit Baltistan was the chief guest in the session. Renowned businessmen based in Gilgit Baltistan, women entrepreneurs, Zahid Latif Khan Securities’ officials and member of the Executive Committee of GBCCI attended the session.

The PSX officials were requested to present special packages for the financiers and businessmen in the region. The Governor of Gilgit Baltistan believed that this will help in providing employment to the citizen of the region.

PSX and GBCCI agreed to manage a joint awareness session for the promotion of the SME Board. Invitations would be sent to SECP officials and brokerage houses to cooperate in these awareness sessions. In addition, GBCCI decided to prepare a feasibility report on viable businesses in GB by consulting the business owners.

Also Read: LCCI and SME Bank collaborate for the development of the SMEs

Financiers interested to invest in local businesses can acquire the feasibility report to avail search for the best fit. It was likewise concurred that the current advisors of Gilgit Baltistan would be acquainted with other experienced TREC Holders. The main focus would be to establish a dedicated group of advisors in Gilgit Baltistan. The awareness session encouraged women entrepreneurs towards expanding their business and opening a brokerage account.

Enormous potential can be found in various sectors in Gilgit Baltistan including mining industry, gem stones industry, trout fish farming industry, apricot export industry, and more. Moreover, these sectors can develop on a great scale and can highly contribute to the national economy if provided with appropriate funds and support.

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