New Delhi: Realizing that south Asian markets have to ultimately allow cross-border listing to keep pace with the global trend, securities regulators of these nations have held preliminary discussions over the issue.
The issue came up for discussion at a recently concluded second annual meeting of South Asian Securities Regulators Forum here.
“Sooner we start thinking in those terms and putting some things together to achieve this the better it is, otherwise other markets would overtake us,” Securities and Exchange Commission of Pakistan Chairman Razi-ur-Rahman Khan told PTI.
At the SAARC level, the issue of cross-border listing is likely to make headway, Khan said, adding that lot more work has to be done before companies of south Asian nations could list on each other’s stock exchanges.
When asked whether the issue of cross-border listing could be taken up at the bilateral level between India and Pakistan, he said “We are open to discussion.”
Besides Khan, SEBI chairman M Damodaran and other south Asian regulators attended the meeting last week.
Like in India, Pakistan is also on the way to demutualize its stock exchanges, he said.
“We are just going to pass the Demutualization Act. After three-four months, exchanges would stand demutualized,” Khan said. This means bringing down brokers’ stake in bourses considerably down.
Unlike in India where the brokers’ stake has to be cut to a maximum of 49%, in Pakistan their holding would come down to 40%, as per the proposed Act, he said.