July 12, 2015 (LBO) – Sri Lanka’s Colombo Stock Exchange (CSE) signed a Memorandum of Understanding (MoU) with the Maldives to explore opportunities for cooperation between the two Exchanges.
Chairman of the CSE Vajira Kulatilaka said the CSE is extending its reach beyond borders to cooperate commercially with its peer exchanges in the region, to collectively uplift the performance of regional Exchanges.
“We recently hosted the South Asian Investment Conference and took over the Chairmanship of the South Asian Federation of Exchanges (SAFE) and the relationships forged through these regional bodies have already begun to yield positive results,”
The move will help foster prosperity of the respective financial markets, promote cross border investment, cross border listing and explore other opportunities for cooperation between the two Exchanges, a statement said.
“The Exchanges anticipate developing a closer working relationship in the future, and wish to maintain channels of communication for exchange of information, knowledge transfer, sharing of technology and other commercial purposes.”
According to the statement the MoU delineates the following areas of cooperation; establishing a system to support marketing of local issuances, examining the possibility of creating a framework for cross-listing and dual listing of securities.
It also deals with identifying a mechanism for cross-border regulation of companies listed on the Exchanges, mutual exchange of information on business operating models and related improvement opportunities and examining the mechanism of trading securities listed in both Exchanges.
“This MoU will help both our Exchanges to learn from each other’s experiences,” Managing Director/Chief Executive Officer of the MSC, Hassan Manik said.
“In comparison to the CSE the MSE is a very small Exchange, therefore there are many areas in which the CSE can help the MSE to grow and develop,”