KARACHI, (MILLAT ONLINE/APP): Pakistan Stock Exchange Limited (PSX)
and Punjab Information Technology Board (PITB) on Monday signed a
memorandum of understanding (MoU) to facilitate technological entrepreneurship in the country and provide a nurturing ecosystem for
the growth of technology startups.
Managing Director PSX, Nadeem Naqvi and PITB’s Chairman Umer Saif
were the signatories. The ceremony was held at PSX, which was attended
by number of PSX officials and stock brokers.
The team designated by PSX to promote mutual collaboration
included Head of Special Projects Muhammad Abdullah, Regional
In-charge Lahore Sarmad Hussain, Manager Operations Asmaa Saleem
Malik, and Officer Special Projects Imran Lakhani.
PSX Managing Director said this partnership would indeed serve as
an important stepping stone for budding entrepreneurs who were looking
to raise investment locally. It would not only encourage employment
growth but also increase the technological and economic power of
the country.
He said Pakistan Stock Exchange planned to launch PSX Private
Market soon, after getting approval of PSX Board of Directors, and
Securities Exchange Commission of Pakistan (SECP).
This would be a web-based platform designed to bring together
startups and investors, he said.
The private market would be the third tier capital raising platform
offered by PSX, the second tier was PSX SME Board and the first one
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
could sign up and register themselves.
Start-ups and investors would operating on the “Find, Match and
Deal Mechanism”, whereby start-ups and investors would be connected
with each other to provide a low-cost solution to the financing needs
of start-ups and liquidity needs of investors.
Under the MoU, PITB would share their database of-registered
startups with PSX so that the technology startups could be encouraged
to sign up on the online PSX private market aimed at bringing together
startups and investors, Naqvi said.
PITB Chairman Umer Saif spoke of PITB’s activities and its future
plans.
He said PITB’s technology incubators/accelerator/co-working spaces
would collaborate with PSX to promote the growth of startups. The
parties might coordinate for exploring ways and means to initiate
common business support programmes/projects for startups.
The parties might consider organizing joint events including
conferences and workshops with representation from both the parties in
promoting entrepreneurship.
PSX and PITB would jointly create awareness amongst stakeholders
regarding the three capital raising platforms offered by PSX that is,
Main Board (first tier), SMEs Board (second tier) and Private Market
(third tier), he said.
Umer Saif said that another important highlight was that PSX and
PITB would jointly approach relevant regulatory bodies to advocate the
case of startups and would propose framework to assist startups in
raising equity financing by introducing favorable listing terms
particularly in terms of paid-up capital.