Aiming to strengthen regional capital market cooperation, the Pakistan Stock Exchange (PSX) has inked a tripartite Memorandum of Understanding (MoU) with the Colombo Stock Exchange (CSE) and the Dhaka Stock Exchange (DSE).
The agreement, signed in Colombo on Friday, seeks to establish an exchange forum to facilitate technology development and sharing, human resource sharing, product development, regulatory collaboration, investor protection, and knowledge exchange, fostering a continuing relationship across the three markets.
The senior leadership of all three exchanges attended the signing ceremony, with PSX represented by CEO Farrukh H. Sabzwari; CSE by CEO Rajeeva Bandaranaike; and DSE by Chairman Board of Directors Mominul Islam.
According to the MoU, the key areas of cooperation for the three exchanges are:
- Technology Advancement: Joint initiatives in system development and digital transformation.
- Human Capital Development: Cross-exchange training programs and knowledge-sharing initiatives.
- Product Innovation: Collaborative development of new financial instruments.
- Regulatory Best Practices: Harmonization of market oversight and investor protection frameworks.
- Dual Listings: Exploration of cross-border listing opportunities to expand investor access.
- Commercial Linkages: Facilitation of broker partnerships and institutional connectivity.
Addressing the ceremony, Securities and Exchange Commission of Pakistan Chairman Akif Saeed remarked: “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.”
PSX CEO Sabzwari likewise described the agreement as 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 said.
The MoU establishes a formal platform for ongoing dialogue and joint initiatives, with working groups to be formed to implement the cooperation framework. In a statement, the PSX hoped it would enhance market liquidity and product diversity; strengthen regulatory frameworks across the region; facilitate cross-border investment flows; and promote technological innovation in market infrastructure.
Additionally, the initiative aspires to foster deeper regional cooperation among the three South Asian nations while creating new opportunities for investors and market participants across the region.