SECP sends draft Venture Capital Bill to BoI

Business Recorder reported that the SECP has passed its draft Venture Capital Bill to the BoI so the investment body can weigh in before the text advances. The proposal, announced in a statement on Monday, aims to widen funding avenues for startups and technology firms in the country. The commission said startups and tech companies have had limited formal access to venture capital so far.

The draft seeks a simple rulebook for venture capital funds and their managers, together with a quicker licensing and registration process for such funds. According to the commission, bringing these activities into the formal financial system should support startup growth, draw in fresh capital and generate jobs. SECP Chairman Dr Kabir Sidhu described the availability of venture funding as essential for emerging startups.

Both bodies intend to seek views from interested parties through public consultation before the text moves on. Once that process ends, the text will go to the government for enactment.