The signing ceremony was witnessed by the Prime Ministers of both countries, The Honourable Atal Bihari Vajpayee and Y.A.B. Dato Seri Dr Mahathir Mohamad at Putrajaya earlier today. The MOU marks the need for greater collaboration between India and Malaysia to effectively police and develop securities and futures markets, in view of greater cross-border trade and cross-market linkages brought about by the globalisation of financial markets.

Under the MOU, both regulators recognise the desirability for providing assistance and exchange of information to aid each other in ensuring compliance with laws and regulations in their respective countries. The scope of the Memorandum includes providing assistance and taking action against insider dealing, market manipulation and other fraudulent practices in securities dealings. The exchange of information also seeks to promote high standards of fair dealing and integrity in the conduct of business. In essence, the signing of the MOU would help to safeguard the interests of market participants and ensure the fair and orderly development of the securities and futures markets of the signatory countries.

SC Chairman Encik Ali Abdul Kadir said that South-South cooperation is crucial for the exchange of information, know-how and skills amongst South countries.

"Increasing internationalisation of securities markets has created new challenges for the region. As regulators, we must join forces to ensure that there are adequate protections for investors in a constantly changing marketplace," he said.

This is the thirteenth MOU that the SC had signed with its counterparts. The SC had earlier signed MOUs with market regulators in Argentina, Australia, Brazil, Chile, China, Hong Kong, Indonesia, Kenya, France, South Africa, Taiwan and Thailand.