PSX signs MoUs with SMEDA, ICCI

KARACHI: Pakistan Stock Exchange Limited (PSX) on Friday signed a memorandum of understanding (MoU) with Small and Medium Enterprises Development Authority (SMEDA) and Islamabad Chamber of Commerce and Industry (ICCI) for mutual cooperation and collaboration to facilitate access to equity financing for Small and Medium Enterprises (SMEs).

General Manager of SMEDA, Javed Iqbal Khattak and Managing Director of PSX, Nadeem Naqvi signed the MoU. Member of the Board of PSX, Abid Ali Habib and Provincial Chief of SMEDA (Punjab) Raja Hassanien Javed were also present on the occasion.

In Islamabad, ICCI President Khalid Iqbal Malik signed the MoU, says PSX statement.

A core objective of the MoUs is to generate awareness amongst SMEs regarding the benefits of listing in terms of not just obtaining financing for growth but also to create proper corporate structure for long term business sustainability, improved branding, have greater credibility with buyers and suppliers and importantly, managing and growing family wealth in a manner that avoids conflict within families.

Pakistan Stock Exchange is finalizing the launch of its Small and Medium Enterprises (SME) Board ; a platform for SMEs to raise equity capital to fund their growth and expansion needs.

A public company with post issue paid up capital of not less than Rs 25 million and not more than Rs. 200 million is eligible to get listed on the SMEs Board.

For promoting the SME sector and to encourage SMEs to get listed on the SME Board, PSX has endeavored to make the listing procedure simple and easy.

To reduce listing cost, listing fees of the Exchange have been capped at Rs. 50,000.

During the MoU signing ceremony, both SMEDA and PSX representatives agreed that there was a dire need to promote small and medium businesses growth in Pakistan as these account for 80 percent of non-agricultural labour force while their ability to access bank financing was usually very limited; primarily due to high collateral requirements.