SECP proposes new law to unlock funding for startups

Business Recorder reported that the Securities and Exchange Commission of Pakistan has sent a draft Venture Capital Bill to the Board of Investment for public comment. The statement, issued on Monday, framed the proposal as a standalone regulatory framework for venture capital. According to the regulator, the sector has limited access to formal funding, with much of its activity conducted offshore.

The bill was prepared after a federal government initiative asked the commission to build a dedicated regime that improves funding for startups and high-growth businesses. Its stated goals include attracting more risk capital from home and abroad, supporting startup expansion, creating employment and lifting economic growth. The draft offers light-touch licensing, simpler fund structures, and clear governance and reporting rules, while bringing venture activity into the formal system.

SECP chairman Dr Kabir Ahmed Sidhu was quoted in the statement as saying the law would channel private money into emerging businesses. He added that the bill would cut regulatory hurdles while keeping governance strong and protecting investors. Next, the commission and the Board of Investment will consult startups, fund managers, legal and financial experts, the State Bank of Pakistan, the Pakistan Stock Exchange and industry bodies before the bill goes further in the legislative process.