Less than Rs200m paid-up capital: KSE approves SME board

AHMED MALIK

KARACHI: In a bid to attract more listings and to increase trading activity on the stock market, the Board of Directors of Karachi Stock Exchange (KSE) has approved SME board in which small and medium enterprises having a paid-up capital of less than Rs 200 million would be listed. The decision was taken in the KSE board of directors meeting, held here on Tuesday.

Sources told Business Recorder that the listing fee for the SMEs would be lower than normal listings at the KSE. There would also be less documentation requirement for the listing of small companies at the SME board, they added.

After this decision, there would be two separate boards i.e. normal board for existing large companies and SME board for small and medium enterprises. However, trading of the newly listed SMEs will take place on the same terminals, they added.

"It is a very positive initiative taken by the KSE board and the small companies would have chance of listing at the stock exchange," analysts said. "The number of listed companies will increase that will attract more participants and investors at the bourse," they added. "Obviously, trading activity would increase at the stock market," they said.  They said that the decision has been taken to promote listing of small and medium enterprises having paid-up capital less than the existing listed companies.