Karachi: The Pakistan Stock Exchange Limited (PSX) has announced proposed amendments to its regulations governing the Growth Enterprise Market (GEM) Board. This initiative aims to enhance market liquidity and trading by increasing investor participation. The announcement was made in accordance with Section 7 of the Securities Act, 2015, and interested parties have been invited to submit comments by April 18, 2025.

The GEM Board of PSX serves as a platform for growing companies, including small, medium, and greenfield businesses, to raise capital for their expansion. It offers a flexible listing and regulatory environment as an alternative to the Main Board. Due to its significant potential, PSX is committed to introducing reforms on the GEM Board to achieve the desired objectives.

The proposed amendments include a cap on the Post Issue Paid-Up Capital (PIPC) for GEM at PKR 1,000 million at the time of listing, with a minimum requirement unchanged at PKR 25 million. For the Main Board, the minimum PIPC is proposed to be increased from PKR 200 million to above PKR 1,000 million.

Additionally, two listing routes are proposed for GEM: the existing ‘Information Memorandum’ for Accredited Investors and a new ‘Simplified Prospectus’ route allowing general public participation in initial offerings and secondary market trading.

For GEM listings involving Accredited Investors, the threshold to qualify as an Accredited Individual Investor is proposed to be reduced from PKR 5 million to PKR 1 million. According to information available from the Pakistan Stock Exchange (PSX), these reforms are part of ongoing efforts to differentiate the Main Board and GEM Board while encouraging broader market participation.

The proposed migration criteria to the Main Board for companies listed on GEM include conducting a public offer, ensuring full compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019, and maintaining a minimum of 500 shareholders, excluding sponsors.

Interested parties are encouraged to provide their feedback on these amendments by the specified deadline. The detailed proposals and guidelines for submission of comments are available through the PSX’s official channels. The designated market category for these reforms is the Growth Enterprise Market (GEM) Board.