SECP proposes new VC law to unlock startup funding

According to Mettis Link News, the Securities and Exchange Commission of Pakistan has forwarded a draft Venture Capital Bill to the Board of Investment so that it can be opened to public comment. The framework is meant to widen the pool of risk capital available to startups and fast-growing firms. Its stated goals include drawing in both local and overseas money, backing new companies and generating jobs.

The regulator notes that a large share of venture investment in Pakistan's startup, technology and innovation space has flowed through offshore or unregulated vehicles outside the domestic rulebook. The draft seeks to close that gap with a simple, transparent system for funds and their managers. Licensing and registration would stay light, operations would be simplified, and governance and reporting duties would be spelled out.

SECP Chairman Dr. Kabir Ahmed Sidhu said the bill recognises the high-risk character of venture capital while trying to lower regulatory hurdles and maintain investor protection. Next, the SECP and BOI will hold consultations with startups, fund managers, legal and financial specialists, the State Bank of Pakistan, the Pakistan Stock Exchange and industry bodies before the draft enters the legislative process.