PSX sings MoUs with SMEDA, ICCI

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PSX sings MoUs with SMEDA, ICCI

KARACHI, Apr. 28 (APP) : 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.