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RECORDER REPORT

KARACHI: The bourses of six South Asian countries have formed a new organisation named as South Asian Federation of Exchanges (SAFE) to increase cooperation among the member countries and encourage cross-border listing of the companies.

The chairman of the Karachi Stock Exchange, Arif Habib alongwith Managing Director Shahid Ghafar led a delegation to a conference in Chittagong, Bangladesh, in connection with the formation of a Federation of South Asian Exchanges. The leaders of the South Asian Stock Exchanges concluded a two-day conference on January 16, 2000.

The new organisation has been named as SAFE with Pakistan, India, Bangladesh, Sri Lanka, Bhutan and Nepal as its members.

The objectives of SAFE are to encourage cooperation among the members in order to promote the development of their respective securities markets, work towards common standards including international accounting standards and the best business practices in securities markets. The SAFE would also encourage the cross border listing and trade in the region, cooperate in human resource development and transfer of technology and other issues of common interest as and when they arise.

Amir Khosru M. Chowdhury, President of Chittagong Stock Exchange, was elected as the chairman and Hiran Mendis, Director General of Colombo stock exchange was elected as the vice chairman of the Federation. A five-member executive committee comprising the following was formed: Arif Habib, chairman of Karachi Stock Exchange, Mrs Deena Mehta Vice President of the Stock Exchange of Mumbai, J.H. Bosco, managing director of OTC India. The initial executive committee has been formed for a period of two years.

A joint declaration was signed by the promoter stock exchanges at a simple signing ceremony following the formal acceptance of SAFE's charter. The executive committee is scheduled to hold its first meeting in Mumbai, India in February 2000.