SECP shares draft VC Bill with BOI for public consultation

The Securities and Exchange Commission of Pakistan has circulated a draft Venture Capital Bill to the Board of Investment for public consultation, according to Business Recorder. The proposed law is intended to widen access to risk capital, draw domestic and foreign money, back startups and high-growth firms, generate employment and support economic expansion. The Bill was drafted under a federal government initiative that asked the SECP to build a dedicated and standalone system governing venture capital.

Pakistani startups and technology firms have limited access to formal venture funding, since much of the deal flow happens overseas or beyond local oversight. The draft seeks a simple, transparent setup for funds and their managers, with light-touch licensing, streamlined structures and defined governance and reporting duties. SECP Chairman Dr Kabir Ahmed Sidhu said the law would steer private money toward emerging companies while reducing barriers and protecting investors.

The SECP and BOI will next hold public consultations with startups, fund managers, legal and financial specialists, the State Bank of Pakistan, the Pakistan Stock Exchange and industry associations. Only after that stage will the draft move through the legislative process.