Islamabad, November 4, 2025 – The Securities and Exchange Commission of Pakistan (SECP) has approved a new Book Building Mechanism, marking a major step toward the modernization of Pakistan’s capital market.
According to a press release, the SECP’s approval finalizes the joint procedures for implementing recent amendments to the Public Offering Regulations, 2017, setting a comprehensive operational framework for book building in Initial Public Offerings (IPOs).
The new system is aimed at ensuring fair price discovery, improving transparency, and enhancing investor confidence, in line with SECP’s broader agenda of deepening market participation and strengthening efficiency.
The Pakistan Stock Exchange (PSX) and the National Clearing Company of Pakistan Limited (NCCPL) have jointly developed the upgraded mechanism, which introduces a major structural reform — replacing the traditional Book Runner model with the concept of Eligible Participants (EPs).
Under the revised framework, securities brokers, banks, development finance institutions (DFIs), and mutual funds can now participate directly in the book building process. The enhanced interface allows brokers to onboard clients seamlessly, while banks and DFIs acting as Consultants to the Issue can also register participants for bidding.
Eligible Participants may submit bids for themselves or on behalf of clients, with the option to keep bid visibility disclosed or undisclosed, ensuring flexibility and confidentiality.
By enabling broader participation, the SECP’s new mechanism is expected to expand market outreach, enhance efficiency, and strengthen competitiveness. The integrated system leverages PSX’s technology and NCCPL’s settlement infrastructure, ensuring secure and transparent handling of margin collection, settlement, and refunds in IPOs.