December 03, 2003


The abbreviation of SAFE is South Asian Federation of Exchanges and it has initiated the move for a cross border listing of companies. (reports Pakistanlink)

The countries of South Asian region including Bangladesh has taken initiative to commence regional cross border trading facilities among the regional bourses. The above initiative will be successfully done when the regional watch dog bodies Securities and Exchange Commission will permit and give permission to do cross border trading.

As a first step the SAFE think tank would encourage one company each from Bangladesh and Sri Lanka to get listed in each other's exchange. Colombo Stock Exchange has already agreed on this proposal. Similarly, they would desire one listed company in Pakistan and India to get listed in other's exchange to initiate the integration process. This would attract foreign investors and fund managers towards South Asian capital markets.

The SAFE Secretariat (currently located at Chittagong Stock Exchange) has already received joining consent from the invited seven securities market regulators of the region (i.e. Bangladesh, Bhutan, India, Pakistan, Nepal, Sri Lanka and Mauritius) and the representatives of regulators who will add their valuable inputs.

Currently SAFE has twelve members, that include Chittagong Stock Exchange, Colombo Stock Exchange, Dhaka Stock Exchange, Islamabad Stock Exchange, Karachi Stock Exchange, Lahore Stock Exchange, Mumbai Stock Exchange (BSE), National Stock Exchange India, Nepal Stock Exchange, OTC Exchange India, Royal Securities Exchange Bhutan and Stock Exchange of Mauritius.

The only hindrance with this initiative is the India-Pakistan relation. But as the relation is rapidly improving after the cease fire we can expect cross border trade among the SAFE members soon.


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