Kuala Lumpur/New Delhi, 20 January 2010

Malaysia and India sign agreement to enhance capital market collaboration

The Securities Commission Malaysia (SC) and the Securities and Exchange Board of India (SEBI) today signed a landmark agreement that will further augment the relationship between the two authorities and identify future cross-border opportunities through the capital market.

The signing, held in New Delhi, was witnessed by the Prime Minister of Malaysia YAB Dato’ Sri Mohd Najib Tun Abdul Razak and the Prime Minister of India Dr. Manmohan Singh.

The ‘India – Malaysia Capital Market Collaborative Agreement’ was signed by the SC Chairman Tan Sri Zarinah Anwar and SEBI Chairman Mr C.B. Bhave, on the first day of Dato’ Sri Najib’s official visit to India.

“Building on the close relationship between India and Malaysia, and the significant potential and strengths of the respective capital markets, we hope to raise our relationship with India to a higher level with the signing of this significant agreement,” Tan Sri Zarinah said. “It underscores our commitment to collaborate in the development of our respective markets as well as in relevant areas of cross-border cooperation.”

The Agreement will strengthen the regulatory co-operation between SC and SEBI further, including among others examining the establishment of a framework for mutual recognition in key segments of the capital market to facilitate enhanced cross-border market oversight and exchange of technical knowledge.

Additionally, the Agreement will also look at areas of cross-listing and cross-trading in the two respective markets.

Following the signing of this Agreement, both regulators will set up a bilateral working group to achieve the objectives of the Agreement.

The SC and SEBI have a long established relationship with each other, building on from a Memorandum of Understanding that was signed in 2001. In 2008, this tie was further strengthened when they jointly organized the India-Malaysia Capital Market Forum in Mumbai which attracted over 250 participants from the Indian and Malaysian capital markets.