ISLAMABAD: The Securities and Exchange Commission of Pakistan has granted approval to the first technology-based crowd funding platform for commencement of live testing and experimentation under...
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has granted approval to the first technology-based crowd funding platform for commencement of live testing and experimentation under first cohort of its technology-driven initiative – Regulatory Sandbox, a statement said on Tuesday.
Crowd funding platform is an online digital platform that allows startups and small and medium enterprises to fund their capital requirements from investors in return for securities.
The platform would conduct requisite due diligence on behalf of the investors and only eligible issuers that meets certain threshold criteria would be allowed to pitch the issue through the crowd funding platform and raise funds from investors, it said.
The applicant will be allowed to operate in a controlled environment for a period of up to six months, in accordance with the conditions and limitations imposed as part of the approval, the statement said.
During the testing period, the applicant will be able to test its business model in a live environment under the direct supervision of the commission.
At the end of the testing period, the applicant would submit a comprehensive report to the commission on the fund-raising activities carried out through the platform, which will then determine the future course of action for regulating crowd funding platforms in Pakistan, it added.