April 16, 2025 – In a move aimed at strengthening the capital market ecosystem for small and medium-sized enterprises (SMEs) and startups, the Pakistan Stock Exchange Limited (PSX) held a consultation session to review and refine proposed amendments to the regulatory framework governing the Growth Enterprise Market (GEM) Board.
The consultative event, which took place both physically at PSX’s Karachi headquarters and virtually, brought together a wide range of industry stakeholders. Participants included Consultants to the Issue, securities brokers, and market professionals. This hybrid format ensured inclusive engagement from participants across the country, facilitating a comprehensive and diverse exchange of views.
The primary objective of the proposed reforms is to enhance the functionality, liquidity, and overall appeal of the GEM Board. By refining its regulations, PSX aims to create an environment that is more conducive to increased trading activity and greater market participation. In doing so, it hopes to provide a more effective platform for emerging businesses seeking to raise capital and grow their operations through public investment.
The consultation session served as a critical platform for gathering feedback and insights from market participants, allowing stakeholders to voice their opinions on the proposed changes. According to a press release issued by PSX, the event was designed to ensure that the amended regulations reflect the actual needs of the market and align with international best practices for SME and startup-focused trading boards.
Leading the session were senior PSX officials including Managing Director and CEO Mr. Farrukh H. Sabzwari, Chief Regulatory Officer Mr. Ajeet Kumar, and Chief Listing Officer Mr. Syed Ahmad Abbas. Their presence underscored the strategic importance of the reforms, and their leadership ensured the discussion remained focused on actionable improvements to the GEM Board structure.
The feedback gathered during the session is expected to play a pivotal role in shaping the final amendments to the PSX Regulations. The overarching goal is to enhance transparency, boost efficiency, and inspire greater investor confidence in listings on the GEM Board. The process is also intended to address current market challenges, such as low trading volumes and limited investor engagement in early-stage and growth enterprises.
Stakeholders who were unable to attend the session are still encouraged to submit their comments, as the feedback window remains open. PSX has reiterated its commitment to a collaborative approach, stating that reforms will only be finalized once a thorough review of stakeholder input is complete.
This initiative reflects PSX’s broader mission to support a more inclusive and vibrant capital market in Pakistan. By refining the GEM Board’s regulatory environment, PSX is making a concerted effort to empower SMEs and startups—two segments that are critical to innovation, job creation, and economic growth.
As the Pakistani financial sector continues to modernize, the success of platforms like the GEM Board will be instrumental in democratizing access to capital and fostering a new generation of high-growth companies. PSX’s reform-driven consultation is a significant step forward in achieving these long-term goals.