ISLAMABAD, Dec 18: The Securities and Exchange Commission of Pakistan (SECP) and the China Securities Regulatory Commission (CSRC) have signed a memorandum of understanding (MoU) to further enhance regulatory cooperation and information sharing between the regulatory agencies of the two countries. The MoU was signed in the backdrop of emergence of globally integrated financial markets, necessitating for regulatory agencies of capital markets to develop cooperative linkages to ensure information sharing for enforcement of securities laws and facilitate detection and combat cross-border violations.

The SECP is promoting bilateral cooperation with counterpart regulatory authorities of the capital market at the bilateral, regional and international level.

The SECP has already established cooperative arrangements through MoUs with the regulatory agencies of India, the Maldives, Australia, Bhutan, Sri Lanka and Iran.

The accord was signed in the presence of prime ministers Wen Jiabao and Yousuf Raza Gillani here on Friday by SECP commissioner Tahir Mahmood and Chinese Ambassador to Pakistan Liu Jian on behalf of CSRC.

The accord provides parameters of cooperation and consultation, seeking to enforce and ensure compliance with respective laws and regulations in both countries.

The document reiterated the commitment of the securities regulators to work together in ensuring that securities and futures markets in Pakistan and China are fair, transparent, efficient and regulate to world class standards.

“The accord is aimed at supporting national economy and minimising risk that is usually involved in financial market transactions,” Tahir Mahmood said.

Describing the MoU as a significant milestone in the development of the capital markets of Pakistan and China, he added that increasingly expanding securities markets require cooperation among the regulatory bodies of the capital markets at the international level for adequate protection of investor rights.

Tahir Mahmood expressed confidence that the MoU would prove to be a step towards building a strong cooperative arrangement between the SECP and the CSRC.