SECP Wants Partnerships, AOPs and Other Non-Corporate Businesses to List At PSX

The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to public offering regulations to make it easier for partnerships, associations of persons (AoPs), and limited liability partnerships (LLPs) to raise capital from the stock market, according to a consultation paper issued on March 18.

Under the proposed changes, such businesses will be allowed to use their past financial and operational track record when applying for stock exchange listing after converting into a company. The draft amendments have been released on SECP’s website for public feedback.

The move aims to reduce entry barriers for private businesses and enable well-established firms to access growth capital more easily, while also supporting the development of Pakistan’s capital market.

Currently, companies are required to demonstrate at least two years of profitability before making a public offering. The proposed framework would allow eligible partnerships transitioning into corporate structures to count their previous performance toward this requirement, subject to certain conditions.

To ensure transparency and investor protection, these entities will be required to prepare financial statements in line with applicable accounting and disclosure standards, with audits conducted by quality control review-approved auditors.

The SECP said the initiative is expected to encourage more partnership-based businesses to formalize into corporate entities and participate in the regulated capital market. Stakeholders have been invited to submit feedback within 14 days.