Pakistan Stock Exchange Limited (PSX) and Punjab Information Technology Board (PITB) will develop a web based platform “PSX Private Market” which would be designed to bring together startups and investors.
The Private Market would be the third tier capital raising platform offered by PSX, the second tier being the PSX SME Board and the first tier being the PSX Main Board. The objective of the Private Market would be to enhance access to finance for startups by providing them an online platform where they can sign up and register themselves.
In this regard, Pakistan Stock Exchange Limited (PSX) and Punjab Information Technology Board (PITB) shall be signing a Memorandum of Understanding (MoU) in coming week. This step will promote mutual cooperation and collaboration to facilitate technological entrepreneurship in Pakistan.
Dr. Umar Saif Chairman PITB earlier explained that the project will strength the partnership between PITB and PSX to serve as an important step forward to encourage entrepreneurs seeking to raise investment locally.
The platform would give major boost to the small and medium enterprises, help in growth of IT industry and strengthen the national economy.
The collaboration will facilitate technological entrepreneurship in Pakistan and help in nurturing yje ecosystem for the growth of technology startups.
Under the proposed MoU, PITB would share their database of registered startups with PSX so that the technology startups are encouraged to sign up on the online PSX Private Market, which will aim to bring together startups and investors.
The launch of Private Market is subject to PSX Board and SECP’s approval. Furthermore, PITB’s technology incubator/accelerator/co-working space shall collaborate with PSX to promote the growth of startups. The parties may coordinate for exploring ways and means to initiate common business support programs/projects for startups.
The parties might consider organizing joint events (e.g. conferences, workshops) with representation from both parties to promote entrepreneurship. Moreover, PSX and PITB will jointly create awareness amongst stakeholders regarding the three capital raising platforms offered by PSX, i.e. Main Board (first tier), SME Board (second tier) and Private Market (third tier).
Another important highlight was that PSX and PITB will jointly approach relevant regulatory bodies to advocate the case of startups and will propose framework to assist startups in equity financing by introducing favorable listing terms particularly in terms of paid-up capital.