BD, Pak, Sri Lanka Sign Deal to Strengthen Capital Market Ties

In a significant move towards strengthening regional capital market collaboration, the Dhaka Stock Exchange (DSE), Pakistan Stock Exchange (PSX), and Colombo Stock Exchange (CSE) signed a groundbreaking Memorandum of Understanding (MoU) on Thursday, March 27. The agreement, hailed as a "landmark development" by the PSX, is set to enhance cooperation between the three South Asian exchanges and create new opportunities for investors across the region.

The MoU aims to establish a comprehensive framework for cooperation, focusing on technology sharing, human resource development, product innovation, regulatory alignment, investor protection, and knowledge exchange among the three markets. This initiative is expected to foster deeper regional ties, benefiting market participants and investors in all three countries, according to a statement from Arab News.

The PSX emphasized that the partnership would open new avenues for cross-border collaboration, boosting market integration and creating a more resilient financial ecosystem. "This agreement represents a crucial step towards regional market integration. By leveraging our collective strengths, the three exchanges can drive innovation, increase market resilience, and unlock 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 signing ceremony.

Key areas of collaboration outlined in the MoU include joint initiatives in system development, digital transformation, and cross-exchange training programs. The exchanges will also explore the creation of new financial products, align market oversight frameworks, and investigate opportunities for cross-border listings to expand investor access. Additionally, the agreement focuses on fostering broker partnerships and strengthening institutional connectivity across the three nations.

Farrukh H. Sabzwari, Managing Director and CEO of PSX, described the agreement as a "transformative chapter" in regional capital market cooperation. "This partnership will elevate market standards, promote sustainable growth, and deliver greater value to all market participants," Sabzwari stated.

The MoU also sets the foundation for ongoing dialogue and the creation of working groups to implement the cooperation framework. By enhancing market liquidity, broadening product diversity, and strengthening regulatory systems, the alliance aims to facilitate cross-border investments and accelerate technological innovation in market infrastructure.

The signing of this MoU marks a pivotal moment in the integration of South Asia's capital markets, with the potential to drive significant growth and attract global investors to the region.