KARACHI: Pakistan’s Securities and Exchange Commission (SECP) said on Tuesday it had approved a new book-building mechanism to modernize capital markets, promote fair pricing and improve transparency.
The new framework will allow all securities brokers, banks, development finance institutions and mutual funds to participate directly in the book-building process. It aims to strengthen investor confidence while supporting the SECP’s broader goal of deepening market participation and improving efficiency.
The move is part of the regulator’s ongoing efforts to reform capital markets in the South Asian country, which have long faced challenges of low investor participation and limited transparency in public offerings.
“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.”
The Pakistan Stock Exchange (PSX) and the National Clearing Company of Pakistan Limited (NCCPL) have jointly developed this book building system, aligned with the revised regulations.
“By enabling wider participation, the new mechanism is expected to expand outreach, enhance efficiency, and improve overall market competitiveness,” the SECP said.
The new system establishes an operational framework and procedures for book-building in initial public offerings (IPOs), according to the regulator. It leverages the capital market’s existing technological infrastructure, integrating the PSX book-building platform with NCCPL’s functions for collection, settlement and margin refunds.
“The system provides securities brokers with an intuitive interface to onboard clients efficiently,” the SECP said. “Similarly, banks and DFIs acting as a Consultant to the Issue in an IPO can also register their clients for participation.”










