The Pakistan Stock Exchange (PSX) has made it easier for certified individual investors to invest in companies listed on the Growth Enterprise Market (GEM) Board.
The Securities and Exchange Commission of Pakistan gave its permission for the move (SECP). Individual investors with assets of at least Rs. 5 million, including but not limited to the value of securities owned by these individuals in their CDC investor accounts or sub-accounts, are considered accredited investors under the revised criteria.
With the revised eligibility requirement, investors’ entire assets will be taken into account when determining their eligibility to participate in GEM Board companies.
Accredited investors will now self-declare to Securities Brokers that they have assets of at least Rs. 5 million and understand the risks connected with the GEM Board and firms to participate in the GEM Board companies’ listing or post-listing trading activity.
Apart from the regulatory change, the PSX has also announced the methods through which Securities Brokers accept self-declaration.
Individual investors participating in the GEM main market via e-IPO will have their names automatically registered. Individual investors possessing assets worth at least 40% more than the minimum requirement of Rs. 5 million in the National Clearing and Settlement System (NCSS) of the National Clearing Company of Pakistan Limited would be automatically identified as accredited individual investors (NCCPL).
He went on to say that accredited investors should take advantage of this opportunity and profit from investing in GEM Board firms for higher liquidity on the GEM Board during the post-listing trading phase.