Updated March 2nd, 2024 at 18:33 IST

UK plans to introduce private company share trading system

Private Intermittent Securities and Capital Exchange System (Pisces), aims to provide a middle ground between public and private markets.

Reported by: Business Desk
UK plans to introduce private company share trading system | Image:Pixabay
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UK's private trading system: British finance minister Jeremy Hunt is expected to announce plans in next week's budget for a system that would allow private companies to trade their shares on exchanges, according to a report by the Financial Times.

The Treasury is set to launch a consultation on Wednesday to regulate the initiative, which would enable investors to sell part of their stakes in private companies on a limited number of days each year.

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The proposed system, known as the Private Intermittent Securities and Capital Exchange System (Pisces), aims to provide a middle ground between public and private markets, offering liquidity in private company shares without the regulatory requirements of a public listing.

However, Pisces would not permit companies to raise new capital through the system, and retail investors are unlikely to be able to buy shares using it.

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Institutions and employees who own shares in the companies they work for, subject to company agreements, would be able to trade via the system.

The UK Treasury did not immediately respond to requests for comment on the report.

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Media report stated that the initiative aligns with the Finance Ministry's goal of supporting unlisted companies in their growth journey with the hope that they will eventually go public, thereby enhancing the capital market's competitiveness against New York and the EU in the post-Brexit era.

(with Reuters inputs)

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Published March 2nd, 2024 at 18:33 IST