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The Dhaka Stock Exchange (DSE), the Colombo Stock Exchange (CSE), and the Pakistan Stock Exchange (PSX) signed a tripartite Memorandum of Understanding (MoU) in Colombo recently to strengthen regional market cooperation.
Momin Ul Islam, chairman of DSE; Rajeeva Bandaranaike, CEO of CSE, and Farrukh H. Sabzwari, managing director & CEO of PSX, signed the agreement.
The agreement was aimed at establishing an exchange forum to facilitate technology development and sharing, human resource collaboration, and product development across the three markets, reads a press release.
The initiative will foster deeper regional cooperation among the South Asian nations while creating new opportunities for investors and market participants across the region.
DSE Chairman Mominul Islam said stock exchanges in South Asia other than India have technical and procedural limitations due to small market size.
Due to resource constraints, these highly-promising stock exchanges are failing to realize their potential, said Mr Islam, at the event titled "Navigating Frontier Capital Markets: How Evolving Market Regulation and Exchanges Foster Efficient Capital Market Development".
Through mutual exchange of resources and experience and technological joint investment, they will be able to play an effective role in building efficient and strong markets in their respective countries, said the DSE chief.
He also highlighted that the strategic partnership marks a significant step forward in regional market integration. By combining strengths, these three exchanges can drive innovation, enhance market resilience, and create new opportunities for investors across South Asia.
"Working together, we can unlock opportunities for prosperity and innovation in our financial ecosystem, which will bring benefits to investors as well as our partnership," said Mr Islam.
The long-term objective of this MoU is to explore cross-border listing opportunities and facilitate broker partnerships and institutional linkages to expand investor access, he said.
Mr Islam also spoke about the challenges and prospects of the DSE, and the economy of Bangladesh, the post-demutualization experience of the DSE, and what needs to be done to increase mutual cooperation.
DSE shareholder directors Md Shakil Rizvi, Minhaz Mannan Emon, and Richard D' Rozario were present at the event among others.