"This recognition, against the background of financial market turbulence in East Asia, is an important achievement which makes the Consultation Draft a timely and relevant document for securities regulators," Dr. Munir said.

The increasing internationalisation of financial activities and integration of financial markets pose significant challenges to securities regulators. In such an environment, regulators must be in a position to assess the nature of cross-border conduct if they are to ensure the existence of fair, efficient and transparent markets.

The Government has also previously highlighted the pressing need to improve governance of international financial transactions to ensure justice and transparency, and to avoid policies which have far-reaching adverse regional or global repercussions.

The Consultation Draft, which sets out 30 fundamental principles of securities regulation, is an important landmark in IOSCO's history. Sound prudential principles and practices for the regulation and supervision of securities markets are crucial to the stability of global financial markets. This document will provide a yardstick which securities regulators can use to pace and measure developments and regulatory effectiveness of their respective jurisdictions.

At the same time, Dr. Munir said, the work that is being done by the EMC, led by Malaysia, on the "Causes, Effects and Regulatory Implications of Financial Turbulence in Emerging Markets", the final report on which will also be tabled at the Nairobi IOSCO annual conference in September, will ensure the results of the study will be taken on board even as the document on Objectives and Principles of Securities Regulation is debated for final adoption.

Following the IOSCO meetings, the SC also signed a Memorandum of Understanding (MOU) with the Superintendencia de Valores y Seguros (SVS) of Chile to establish a framework for assistance and mutual cooperation between the two regulators. The MOU will also facilitate the exchange of information in ensuring compliance with the securities and futures laws of their respective countries.

The IOSCO is a forum for securities regulators worldwide to address issues and demands related to the securities and futures markets regulations. Eighty-nine national securities regulators form IOSCO's ordinary membership, of which 63 are members of the EMC. There are also 51 affiliate members and 12 associate members. SC joined the organisation in 1993 and was elected to Chair the Working Group on the Regulation of Secondary Markets in 1994. In 1996, SC Chairman Dr. Munir was elected by members of the Emerging Markets to head its Committee for a two-year term.