PSX Signs Agreement with NIFT to Launch E-IPO System

Another breakthrough from PSX just pulled off when Pakistan Stock Exchange (PSX) and National Institutional Facilitation Technologies (NIFT) signed an agreement to collaborate in the development of a new payment and registration system by PSX on March 2, 2021. A step leading to digitally transform the Initial Public Offering (IPO) process through the E-IPO project. Yet another sublime initiative from GOP after launching RDAs (Roshan Digital Accounts) and PSX by creating a podium for Investing in Stock Market through Roshan Digital Account

At the signing ceremony, Mr. Farrukh H. Khan, MD & CEO, Pakistan Stock Exchange, said, “The deployment of the new EIPO system will open new vistas and expand the horizons for investors wanting to invest in new issuances through the convenience of a few clicks via the internet. This system will bring digitalisation for investors at the front-end and will enhance the outreach of PSX, issuers and investors in terms of the IPO process as a whole. The connectivity that this system ensures between investors, share registrars, brokers, banks, gateway firms like NIFT and the shares custodians, CDC, is a great step forward for Pakistan Stock Exchange”.

What is E-IPO

The E-IPO will be an automated system connecting investors and share registrars with brokers/ TRE Certificate Holders and banks through payment gateways including NIFT and the shares custodial company, CDC.

How will it work

The digital portal will provide facility to investors (local, foreign, and institutional), TRE Certificate Holders, and even banks for submission of online subscription applications from anywhere in the world through the internet. The system is connected in real-time with Central Depository Company (CDC), payment gateways (e.g. NIFT and others), and shares registrars for providing end-to-end digitalisation. NIFT ePay will help investors to make payments online for all the E-IPOs with a secure and seamless payment experience directly from their bank accounts expanding potential investors’ ability to digitally participate using NIFT ePay services.

The E-IPO system will not only revolutionise the way investors and other market participants take part in an IPO but will also go a long way in establishing the digitalisation of the IPO subscription process in Pakistan. For more details please visit PSX official website.