SECP advances Venture Capital Bill to expand startup investment

According to Mettis Global, the Securities and Exchange Commission of Pakistan has forwarded its draft Venture Capital Bill to the Board of Investment for consultation. The move is designed to widen funding options for startups and tech firms and bring venture capital dealings within the regulated financial sector.

The regulator said that startups and technology companies in Pakistan currently have restricted formal access to venture capital. The draft provides a streamlined regulatory structure for venture capital funds and their managers, together with simpler licensing and registration procedures.

SECP Chairman Dr. Kabir Sidhu stressed that venture capital is vital for emerging startups to grow. He argued the law would encourage fresh investment and generate jobs. Public consultations with stakeholders by the SECP and the Board of Investment will precede the bill being passed on to the government for enactment.