PITB, PSX sign MOU to facilitate innovators, investors
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KARACHI: 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. (APP)
