By Hamid Mahmood ISLAMABAD, April 22 (INP-WealthPK): Pakistan Stock Exchange (PSX) has modified the criterion for authorized people investing in enterprises listed on the Growth Enterprise Market (GEM) Board, according to an agreement with the Securities and Exchange Commission of Pakistan (SECP). According to PSX, accredited investors are those with assets of at least Rs5 million, including the value of securities held in their respective Central Depository Company (CDC) investor account or sub-account. Investors' total assets will be evaluated in determining their eligibility to participate in the GEM Board firms under the amended eligibility requirements. Real estate properties, vehicles, and other assets could be included in the definition of accredited investors' assets. More investors will be allowed to participate in the pre-listing process of firms that will be listed on the GEM Board as a result of this modification. The change would further extend the investor base in GEM Board firms' stock trading, resulting in enhanced liquidity and share volumes. Accredited investors will now self-declare to securities brokers that they have assets of at least Rs5 million and that they understand the risks associated with the GEM Board and GEM companies to be eligible to participate in the listing of GEM Board companies or their post-listing trading activity. Essentially, the GEM rules and regulations were created to help small and medium investors who want to access capital markets but can't meet the stringent requirements for listing on the PSX Main Board. As a result, in addition to the mainboard, the GEM has served as a secondary board for the listing and trading of equity securities at the PSX. The trade displays on both boards, however, will be comparable. The SECP approved the GEM Board listing guidelines in November 2019, making it easier for the SMEs, greenfield projects, digital start-ups, and other businesses to list on the Stock Exchange and obtain financing. The regulatory climate on the GEM Board is more favorable than on the mainboard. The GEM listing is open to any public limited business with audited financial accounts for the previous two financial years and a post-issue worth at least Rs25 million. The GEM Board's minimum listing charge is Rs50,000, which is much less than the PSX Main Board's Rs200,000 minimum listing price. Two firms, Pak Agro Packaging Limited (PAPL) and Universal Network Systems Limited (UNS), were listed on the GEM Board in late November and early December 2021, marking a significant milestone for the PSX. Supernet became the third firm in five months to be placed on the GEM Board in April 2022. By the end of December 2022, the PSX plans to list three to four additional growth businesses on its independently constructed GEM Board. To do this, the market has made it easier for investors to trade growth companies. Around a dozen small and medium-sized businesses and IT start-ups are in the process of being listed. These three to four additional firms, according to PSX CEO Farrukh H Khan, are in various stages of being listed on the PSX GEM Board. By the end of the calendar year 2022, the total number of businesses on the GEM Board will be approximately six or more. This platform will encourage investors to put their money into firms that are growing, profitable, and powerful. Growth enterprises provide investors with the chance to profit from their expansion. Investors invest in these companies in the hope of making a profit and/or receiving dividends, while the companies receive much-needed financing. In other words, by giving chances to investors to invest in firms to flourish, this activity completes an important part of the economic cycle.