PSX signs MoU with Colombo, Dhaka Exchanges for market collaboration

March 27, 2025 (MLN): In a landmark move to strengthen regional capital market cooperation, the Pakistan Stock Exchange (PSX) has entered into a tripartite Memorandum of Understanding (MoU) with the Colombo Stock Exchange (CSE) and the Dhaka Stock Exchange (DSE).

The agreement, signed today in Colombo, aims to establish an exchange forum to facilitate technology development and sharing, human resource sharing, and product development.

It also focuses on regulatory collaboration, investor protection, and knowledge exchange, fostering a continuing relationship across the three markets, as per the press release issued today.

The Key Areas of Cooperation Under the MoU include Technology Advancement, where the three exchanges will collaborate on system development and digital transformation initiatives.

Human Capital Development will focus on cross-exchange training programs and knowledge-sharing initiatives to enhance expertise.

Product Innovation aims at the joint development of new financial instruments to diversify market offerings.

Regulatory Best Practices will promote harmonization of market oversight and investor protection frameworks.

The agreement also explores Dual Listings, enabling cross-border listing opportunities to expand investor access.

Additionally, Commercial Linkages will facilitate broker partnerships and institutional connectivity, strengthening regional market integration.

The signing ceremony was attended by senior leadership from all three exchanges, including Mr. Farrukh H. Sabzwari, Managing Director & CEO of the Pakistan Stock Exchange; Mr. Rajeeva Bandaranaike, CEO of Colombo Stock Exchange; and Mr. Momin Ul Islam, Chairman Board of Directors Dhaka Stock Exchange PLC (DSE).

Also present at the ceremony was Mr. Akif Saeed, Chairman of the Securities and Exchange Commission of Pakistan (SECP) along with other senior officials.

Speaking at the ceremony, Mr. Akif Saeed remarked: "This strategic partnership marks a significant step forward in regional market integration."

"By combining our strengths, these three exchanges can drive innovation, enhance market resilience, and create new opportunities for investors across South Asia," he noted.

Mr. Farrukh H. Sabzwari, MD & CEO of PSX, stated: "This agreement represents a transformative chapter in regional capital market cooperation."

"Through this partnership with our counterparts in Colombo and Dhaka, we aim to elevate market standards, foster sustainable growth, and deliver greater value to all market participants," he added.

The MoU establishes a formal platform for ongoing dialogue and joint initiatives, with working groups to be formed to implement the cooperation framework.

This alliance is expected to enhance market liquidity and product diversity, strengthen regulatory frameworks across the region, facilitate cross-border investment flows, and promote technological innovation in market infrastructure.

This initiative will foster deeper regional cooperation among the three South Asian nations while creating new opportunities for investors and market participants across the region.

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