ISLAMABAD, July 9: The South Asian Federation of Exchanges (SAFE) will provide technical assistance to the stock exchanges of Pakistan in strengthening stock exchange listing regulations.
The federation, in this connection, will assess the listing regulations of the member stock exchanges in comparison with international and regional best practice in order to identify their strengths, weaknesses and development needs. It would then disseminate its findings with recommendations to the member bourses and respective national regulators.
SAFE is a federation of 12 stock exchanges of south Asian countries, including Bangladesh, Bhutan, India, Nepal, Pakistan, Sri Lanka and Mauritius. Chittagong Stock Exchange, which is the convener bourse, acts as the secretariat of SAFE. Its main source of funding comprises contributions by its members.
The project, according to an Islamabad Stock Exchange press release, would be funded by the “Financial Sector Reform and Strengthening Initiative” (also called “First Initiative”), which is a multi-donor programme, supporting capacity building and policy development projects in the financial sectors in developing countries.
Operationally managed by a management unit located in London, the First Initiative provides technical assistance grants for short and medium term projects in the areas of financial sector regulation, supervision and development. It is guided by a governing council composed of the representatives of CIDA, DFID, IMF and World Bank.
The outcome of the project is expected to include a report on the current listing regimes in SAFE member countries and action plan for addressing weaknesses of each national regulatory regime and harmonize the listing regulations in the region.
Keen to strengthen listing requirements in its member stock exchanges by drawing on best practice among its members and internationally, SAFE has launched the project to meet two needs — strengthening of listing regulations in individual SAFE member countries and facilitating progress towards harmonisation in the region.