ISLAMABAD, Aug 30: Securities and Exchange Commission of Pakistan Chairman Dr Tariq Hassan has proposed a three-pronged approach to achieve capital market integration in the Saarc region.

A press release issued here said a speech was delivered on his behalf at a conference organized by the South Asian Federation of Accountants (Safa) and the Institute of Chartered Accountants of India on "Integrated financial sector in the Saarc region".

The three-pronged approach, Dr Hassan said, should include: enhanced collaboration amongst Saarc capital market regulators through MoUs and other such bilateral accords/agreements; harmonization of laws/regulations, accounting and governance standards and development of a regulatory framework with regard to enforcement, compliance, investor protection and information sharing cooperation, etc.; and facilitation of cross-border transactions within the region.

The SECP chairman observed that regional economic associations were fast emerging out of the threat of globalization. He said domestic securities markets were being increasingly integrated into a global market, thus the increasing importance of cross- border operations in today's capital markets could not be overlooked.

In order to save the securities markets of the emerging countries from the International Organization of Securities Commissions (IOSCO), he emphasized the need for global and integrated regulators who were in a position to assess the nature of cross-border conduct in order to ensure the existence of fair, efficient and transparent markets.

Dr Hassan urged Saarc to play its role in the integration of capital markets of South Asian countries. "The Saarc countries should move beyond political aspiration to economic action," he said.