The Securities and Exchange Commission of Pakistan (SECP) is taking various initiatives to create an enabling regulatory framework for facilitating startups in Pakistan. These measures will attract local and international innovators, SECP’s Commissioner for Information System and Technology, Shauzab Ali revealed.
He said that the SECP will amend the Companies Act to facilitate Startups in an attempt to provide a conducive environment to young innovative entrepreneurs.
He was addressing a consultative session aimed at discussing options for a coherent industry policy for startups. The Chairman and Coach Planet N, Chairman National Clearing Company (NCCPL), representatives from Central Depository Company (CDC), President P@SHA, Director National Incubation Center, CEOs and founders of startup companies, and lawyers were among participants. Young entrepreneurs, prominent technology experts and representatives of the financial sector also attended the session, organized by SECP at CDC House Karachi.
The Commissioner briefed the participants on various initiatives of SECP, including amendments in Private Equity and Venture Capital Regulations, draft Equity Crowdfunding Regulations, the launch of a startup portal, setting up a CRO facilitation desk and launching of first regulatory Sandbox in Pakistan.
The SECP officials briefed the participants on proposals to eliminate arduous requirements in the Companies Act that are not viable for startups. Similarly, with the advent of new technology-enabled financial products reshaping modern businesses, SECP discussed the concept of equity crowdfunding, which is one of the fastest evolving products within the Fintech landscape.
The participants deliberated upon issues related to capital formation for small businesses and proposed various regulatory amendments to provide ease of doing business to startups.
In a fast-paced interactive workshop, participants discussed various proposals and gave feedback on SECP’s initiatives for the facilitation of startups. Also, the participants discussed challenges in the current foreign exchange regime and taxation structure for startups.
The SECP will hold two more consultative sessions on Startup regulations, each in Lahore and Islamabad.
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Something SECP must look into and its long over due
Our digital revolution self professed czars are laughably clueless. Janab pehly IT freelancer/startup ka bank account open karny ki policy to dy to stone age state bank ko.
The biggest reform to be done is simplification of Taxation system and consolidation of innumerable levies, surcharges and sales tax.