The Securities and Exchange Commission of Pakistan (SECP) has proposed changes to public offering regulations aimed at enabling partnerships, Associations of Persons (AoPs), and Limited Liability Partnerships (LLPs) to raise funds through the stock market.

According to a consultation paper issued on March 18, the regulator plans to ease listing requirements for non-corporate businesses by allowing them to leverage their historical financial and operational performance after converting into corporate entities. The draft amendments have been published on the SECP’s website for public consultation.

The proposal is designed to lower entry barriers for private firms, making it easier for established businesses to access growth capital while contributing to the expansion of Pakistan’s capital markets, including the Pakistan Stock Exchange.

At present, companies must demonstrate at least two years of profitability before launching a public offering. Under the proposed framework, eligible partnerships transitioning into companies would be allowed to count their past track record toward this requirement, subject to specific conditions.

To ensure transparency and safeguard investors, such entities will be required to prepare financial statements in accordance with applicable accounting and disclosure standards. These statements must also be audited by firms that meet Quality Control Review requirements.

The SECP believes the move will encourage partnership-based businesses to adopt a corporate structure and enter the formal, regulated capital market. Stakeholders have been invited to submit feedback on the proposals within 14 days.