SECP Sends Draft Venture Capital Bill to BoI for Consultation

The Securities and Exchange Commission of Pakistan (SECP) has forwarded a draft Venture Capital Bill to the Board of Investment (BoI) for consultation, with the proposed legislation aimed at expanding funding opportunities for startups and technology companies in Pakistan.

 

According to the SECP, access to formal venture capital financing for startups and technology businesses remains limited in the country. The proposed law seeks to improve access to venture capital by establishing a simplified regulatory framework for venture capital funds and fund managers.

 

The draft also proposes easier licensing and registration procedures for venture capital funds and aims to bring venture capital activities into the formal financial system.

 

The SECP said the framework could support startup growth, attract new investment and contribute to employment generation.

 

SECP Chairman Dr Kabir Sidhu highlighted the importance of venture capital availability for the development of emerging startups.

 

The SECP and BoI are expected to conduct consultations with relevant stakeholders on the proposed legislation. Following the consultation process, the draft bill will be submitted to the government for further legislative action.