SECP Grants Approval to First Technology-Based Crowdfunding Platform

SECP has granted approval to the first technology-based crowdfunding platform for the commencement of live testing and experimentation.

SECP Grants Approval to First Technology-Based Crowdfunding Platform

The Securities and Exchange Commission of Pakistan (SECP) has granted approval to the first technology-based crowdfunding platform for the commencement of live testing and experimentation under the first cohort of its technology-driven initiative – Regulatory Sandbox.

interesting reading:  Getting Vaccine Into Use Could Slow Down US's Devastating Covid-19 Crisis

The crowdfunding platform is an online digital platform that allows startups and Small and Medium enterprises to fund their capital requirement from investors in return for securities.

Crowd Funding Platform will conduct requisite due diligence on the behalf of the investors and only eligible issuers that meets certain threshold criteria would be allowed to pitch the issue through the crowdfunding platform and raise funds from investors.

interesting reading:  Sindh Gov't Pursues Urban Forests With Transparency

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.

During the testing period, applicants will be able to test its business model in a live environment under the direct supervision of SECP.

interesting reading:  Climate Change Topic Rises As 2020 Election Day Draws Near

At the end of the testing period, the said applicant shall 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 crowdfunding platforms in Pakistan.

Originally published at propakistani

Leave a Reply

Your email address will not be published. Required fields are marked *

Captcha loading...