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South Asian Federation of Exchanges (SAFE) celebrated the completion of its USAID-Small Grants and Ambassador’s Fund Program (SGAFP)funded regional-financial-integration project today during a meeting of regional stakeholders. SAFE’s work has resulted in a “rulebook” that representatives from South Asian countries will use to try to create a harmonized regulatory framework for capital markets throughout the region.
Today’s event brought together diplomatic representatives from various member countries of South Asian Association for Regional Cooperation (SAARC) in one place. During the ceremony, United States Agency for International Development (USAID) Mission Director Greg Gottlieb applauded the successful completion of the project deliverables in a timely manner and emphasized upon the need for better linkages between financial markets of South Asian member countries. Mr. Gottlieb commended the development of the Rulebook for harmonizing the regulatory standards for capital markets of SAARC nations and stressed upon the need for adoption of the proposed regulatory standards in all of SAARC member countries. He advised the member nations and SAARC Secretariat to play their role for the adoption of the Rulebook throughout the various regulatory regimes of capital markets in South Asia.
Gottlieb, a guest of honor at the event, told the audience how much USAID appreciates SAFE’s efforts. “We believe that SAFE’s project will serve as a landmark initiative to achieve economic growth, not only in Pakistan, but all across the South Asian region,” he said.
SAFE’s goals include standardizing the regulatory framework for the management and operations of capital and financial markets throughout South Asia, introducing consistent reporting standards, facilitating easier capital raising in member countries, enhancing market integrity and investor confidence regionally and promoting cross-border listings.
As the only industry association of all capital market entities in the South Asian region, SAFE has engaged major regional stakeholders, enabling SAFE’s consultants to prepare a regulatory framework that would be applicable to all SAARC countries.
During today’s ceremony, project consultants and Secretary General of SAFE presented their final views and comments about the standardization of regulatory regulations in South Asia and discussed roadblocks to their adoption.
“The proposed regulations are related to market operations, market integrity and enforcement regulations,” SAFE’s Secretary General, Aftab Ahmad Ch, told the audience. “All SAFE members in Pakistan, India, Sri Lanka, Bhutan, Maldives, Bangladesh and Nepal are encouraged to adopt provisions of this rulebook, if applicable, in order to promote market integrity, efficiency and transparency.”
SAFE’s principal consultant, Amir Raza Khan, appraised the participants in detail about the project activities undertaken for the grant. Later, the meeting opened for Q&A from media to discuss challenges for adoption of standardized regulatory framework for capital markets in South Asia and ways to alleviate any roadblocks that might hinder adoption of the proposed regulatory recommendations.
Mr. Aftab thanked the American people for their assistance in working towards securing a self-sustaining economic future in Pakistan and SAARC nations by nurturing a more efficient and unified economic environment.
The concept for the project, “Regional Financial Integration – Developing a Harmonized Regulatory Framework for the Capital Markets in Pakistan & South Asia,” was developed by the SAARC Secretariat. SAFE is the only industry association of the stock exchanges in the South Asian region.
SAFE is a cooperative platform launched by the stock markets in South Asia with the purpose of promoting the development and harmonization of the securities markets in the region. SAFE is a not-for-profit association and has Recognized Body status from SAARC, and is a network exchange association of the World Federation of Exchanges (WFE). The operations, activities and the programs of the Federation are primarily funded by its member exchanges, while some specific projects get sponsorships from multilateral donor/development agencies. SAFE consists of 28 member entities from the SAARC Region (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka) as well as from Mauritius and United Arab Emirates.
