KARACHI– The Securities and Exchange Commission of Pakistan (SECP) announced on Tuesday that it has approved a new book-building mechanism to modernize the country’s capital markets, promote fair pricing, and enhance transparency in public offerings.
Under the revised framework, securities brokers, banks, development finance institutions (DFIs), and mutual funds will be able to participate directly in the book-building process. The initiative is designed to broaden investor participation and strengthen confidence in the capital market ecosystem.
“Eligible participants can place bids directly into the book-building system, either on their own behalf or for their clients,” the SECP said in a statement. “Investors are also given the flexibility to choose between disclosed or undisclosed bids, ensuring confidentiality in bid visibility where desired.”
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The Pakistan Stock Exchange (PSX) and the National Clearing Company of Pakistan Limited (NCCPL) jointly developed the new system, which integrates the PSX’s platform with NCCPL’s functions for collection, settlement, and margin refunds.
According to the SECP, the mechanism will streamline initial public offerings (IPOs) and make the process more accessible. “By enabling wider participation, the new mechanism is expected to expand outreach, enhance efficiency, and improve overall market competitiveness,” the commission added.
The regulator said the system provides brokers with an intuitive interface to onboard clients easily, while banks and DFIs acting as Consultants to the Issue can also register clients for IPO participation.
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