In a move geared towards fostering efficiency and promoting the Initial Public Offering (IPO) market, the Securities and Exchange Commission of Pakistan (SECP) has officially implemented a standardized timeline for regulatory approvals and listing procedures.
Under the new directive, the SECP has set a maximum period of 14 working days for the approval of a listing application and prospectus. This initiative is in accordance with the circular issued under section 172 of the Securities Act, 2015.
Furthermore, the circular outlines a 15-day window for the Pakistan Stock Exchange Limited (PSX) to complete the entire post-approval procedures for listing. The goal is to streamline the IPO approval process, attract new listings, and enhance the overall efficiency of the IPO market at PSX.
These timelines, meticulously formulated after extensive stakeholder consultations, signify a paradigm shift in the procedures for filing and approval of IPO applications. Alongside the automation of the process, the Consultant to the Issue (CTI) is assigned a pivotal role in ensuring the timely completion of IPOs.
The CTI is mandated to conduct a thorough assessment of both the issue and the issuer. Additionally, they are required to submit a due-diligence certificate confirming the adequate disclosure of all material information required under the law or as suggested by the PSX and SECP in the Prospectus.
This initiative, effective immediately, is anticipated to render the IPO market more appealing for potential issuers and investors alike. It marks the initial milestone in the SECP’s comprehensive revamping of the IPO regime, with the overarching aim of transforming the financial ecosystem by optimizing fund allocation and boosting local economic growth.
All stakeholders, including PSX, CTIs, book runners, issuers, and other market participants, are advised to adhere to the newly implemented timelines, as per the circular’s immediate enforcement.
