Sri Lanka, Pakistan and Bangladesh sign ‘landmark’ agreement to strengthen capital market cooperation

The Dhaka Stock Exchange (DSE), Pakistan Stock Exchange (PSX) and Colombo Stock Exchange (CSE) have signed a tripartite Memorandum of Understanding (MoU) on Thursday (27 March) in a “landmark move” to strengthen regional capital market cooperation.

The agreement seeks to create an exchange forum to facilitate technology development and sharing, human resource sharing, product development, regulatory collaboration, investor protection, and knowledge exchange across the three markets, reads a press statement issued by the DSE.

The MoU signing ceremony held in Colombo was attended by DSE Chairman Mominul Islam, Colombo Stock Exchange Chairman Dilshan Wirasekara, Securities and Exchange Commission of Pakistan Chairman Akif Saeed, along with directors and senior officials of the institutions.

Commenting on this initiative, DSE Chairman Mominul said, “Due to their small size, stock exchanges in South Asia, except India, have technical and procedural limitations. Due to resource constraints, these highly promising stock exchanges are failing to achieve their desired capabilities. 

Through the mutual exchange of resources and experience and joint investment in technology, our stock exchanges will be able to play an effective role in building efficient and strong capital markets in their respective countries. Working together, we can unlock opportunities for prosperity and innovation in our financial ecosystem, which will bring benefits to investors and stakeholders.”

DSE Directors Md Shakil Rizvi, Minhaj Mannan Emon, Richard D’ Rosario, and General Manager and Company Secretary Mohammad Asadur Rahman, FCS were also present on the occasion as part of the DSE delegation.

Meanwhile, the PSX, in a statement, said, “This initiative will foster deeper regional cooperation among the three South Asian nations while creating new opportunities for investors and market participants across the region.”

Joint initiatives in system development and digital transformation, cross-exchange training programs and knowledge-sharing initiatives, collaborative development of new financial instruments, harmonization of market oversight and investor protection frameworks, exploration of cross-border listing opportunities to expand investor access and facilitation of broker partnerships and institutional connectivity were listed in the PSX statement as the key areas of collaboration under the MoU. 

“This strategic partnership marks a significant step forward in regional market integration. By combining our strengths, these three exchanges can drive innovation, enhance market resilience, and create new opportunities for investors across South Asia,” said Akif Saeed, chairman of the Securities and Exchange Commission of Pakistan (SECP), who was present at the ceremony. 

Farrukh H Sabzwari, MD & CEO of PSX, said the agreement represented a “transformative chapter” in regional capital market cooperation. 

“Through this partnership with our counterparts in Colombo and Dhaka, we aim to elevate market standards, foster sustainable growth, and deliver greater value to all market participants,” he added.

The MoU establishes a formal platform for ongoing dialogue and joint initiatives, with working groups to be formed to implement the cooperation framework. 

This alliance is expected to enhance market liquidity and product diversity, strengthen regulatory frameworks across the region, facilitate cross-border investment flows and promote technological innovation in market infrastructure, the PSX statement said.

Source: The Business Standard
--Agencies