SECP Proposes Simplified Venture Capital Framework to Boost Startup Investment

The Securities and Exchange Commission of Pakistan (SECP) has submitted a draft Venture Capital Bill to the Board of Investment (BOI) for consultation. The new bill aims to simplify the regulatory framework for venture capital in Pakistan, in order to increase the number of investment opportunities available to startups and technology companies.

According to SECP, access to formal venture capital remains restricted for these industries in Pakistan, limiting their capacity to raise the necessary investment for growth. The proposed legislation seeks to integrate venture capital activities into Pakistan's formal financial sector, thereby creating more avenues for local startups to secure funding.

The draft law introduces a simplified regulatory framework for venture capital funds and fund managers, which includes a more streamlined licensing and registration process for these funds. The SECP believes this framework will not only facilitate the development of the venture capital market but also provide startups with improved access to investment.

Speaking about the proposed legislation, SECP Chairman Dr Kabir Sidhu emphasized the importance of venture capital in supporting the growth of emerging startups. He added that the bill would help attract new investment and generate employment opportunities. The SECP and BOI will conduct public consultations with stakeholders on the proposed Venture Capital Bill.

Upon completion of this consultation process, the draft legislation will be submitted to the government for further consideration and eventual legislation.