ABOUT THE PROJECT


Increased cross border financial activities, trade and economic exchanges are known to create strong intra-regional links and an integrated economic region. While in South Asia, efforts have been made to promote intra-regional trade, however the intra-regional financial integration appears to lag behind due to asymmetric developments in the economic and financial sectors. It is in this context that SAFE applied for USAID's Small Grants and Ambassador's Fund Program (SGAFP) in 2011, to develop standardized market regulations so as to create the necessary environment for an enhanced regional financial integration and achieve convergence across different markets of the Region.

PROJECT OBJECTIVE

The concept for this project has been developed under the specific needs identified by the South Asian Association for Regional Cooperation (SAARC) Secretariat of facilitating regional financial integration. The objectives of the project are:

  1. To develop harmonized market regulations for the capital markets;
  2. To standardize self-regulatory framework for the management and the operations of the markets in the region;
  3. To enhance market integrity and investor confidence;
  4. To improve the governance and transparency norms for the listed sector;
  5. To facilitate easy capital raising on regional basis and the promotion of cross border listings;
  6. To deepen and broaden the region's securities markets;
  7. To assist in, relatively, free movement of capital and portfolio investments;
  8. And to promote the greater integration of the South Asian capital and financial markets.

PROJECT OUTCOME:

  1. Codification of the existing legal & regulatory standards within the region related to market operations, market integrity and enforcement;
  2. Identification of Regulatory Differences;
  3. Primary Research Report highlighting major regulatory issues vis-a-vis the Principles set forth by the International Organization of Securities Commissions;
  4. Uniform Model Standards for the region related to market operations, market integrity and enforcement regulations;
  5. Assessment Report; identifying bottlenecks in the portfolio investments in the region;
  6. Final Project Conclusion Report

In order to enable and encourage the stake holders following activities are also planned for the adoption of project recommendations.

  1. Arraigning press briefings & media advocacy meetings
  2. Conducting capacity building training session
  3. Multi-Stakeholder Advocacy Moots with stakeholders
    • Multi Stakeholder Advocacy & Adoption Meeting to be held in Pakistan for SAFE general body delegates, South Asian Securities Regulators' Forum (SASRF) & SAARC Secretariat Economic team;
    • Multi Stakeholder Advocacy & Adoption Meeting to be held at the SAARC Secretariat, in Kathmandu Nepal wherein three Member Team of SAFE EC would  conduct presentations for the SAARC Secretariat officials;
    • Multi Stakeholder Advocacy & Adoption Meeting at Pakistan and Launch of Project Completion  Report

PROJECT OFFSHOOTS

Regional Regulations Harmonization is a step towards regional financial integration in SAFE region. This project will play a role of a pilot activity leading towards several other activities for greater cooperation and regional financial integration in the region. Some of major project offshoots or branch activities those will spin out of this project may be:

  1. Adoption of Standardized Capital Transactions Regulations
  2. Multilateral Investment Treaties
  3. Cross Border FDI, Portfolio and Equity Investments
  4. Inter market connectivity through technological deployment
  5. Multi-currency and location settlements of financial products
  6. Cross border fund raising by domestic companies
  7. Regional Passport for financial services (e.g. EU)
Direct benefit of adoption of project recommendation will be:
  1. Enhanced Market Liquidity
  2. Diversified Investment Opportunities
  3. Wider Fund Raising Options
  4. Enhanced Investors’ Confidence
  5. Improved Governance and Transparency
  6. A step towards regional integration

 

-Contract signing

-Hiring of Project Staff

-Deputation of existing staff

-Appointment of Principal Consultant with SGAFP

-Purchase of equipment (4 laptops with licenses software, Printer, Photocopier, Data Link services)

-Holding Project Initiation Ceremony/First Press Briefing & Media Advocacy Meeting and submission of event report to SGAFP

-Travelling to Bangladesh, Nepal, Bhutan, India, Maldives, Sri Lanka & Afghanistan to meet Exchanges; Regulators

-Submission of visit report to SGAFP

-Holding second Press Briefing & Media Advocacy Meeting and submission of event report to SGAFP

-Submission of Report One to SGAFP on Codification of the existing legal & regulatory standards within the region related to market operations, market integrity and enforcement mechanisms

-Distribution of Report One to market stakeholders

-Holding Third & Fourth Press Briefing & Media Advocacy Meetings and submission of event reports to SGAFP

-Submission of Report Two on Identification of Regulatory Differences

-Submission of Report Three on Primary Research Report highlighting major regulatory issues vis-a-vis the Principles set forth by the International Organization of Securities Commissions (IOSCO)

-Submission of Report Four on Uniform Model Standards for the region related to market operations, market integrity and enforcement regulations

-Holding Fifth and Sixth Press Briefing & Media Advocacy Meeting and submission of event reports to SGAFP

-Submission of Report Five on Assessment Report; identifying bottlenecks in the portfolio investments in the region

-Submission of First Audit Report

-Facilitating mid-term evaluation

-Submission of Final Report

-Holding First Multi Stakeholder Advocacy & Adoption Meeting of SAFE, SASRF & SAARC in Pakistan and submission of event report/minutes of meeting to SGAFP

-Holding Second Multi Stakeholder Advocacy & Adoption Meeting of SAFE, SASRF & SAARC in Kathmandu - Nepal and submission of visit & event report/minutes of meeting to SGAFP

-Holding Seventh and Eighth Press Briefing & Media Advocacy Meeting and submission of event reports to SGAFP

-Holding capacity building workshop and submission of event report to SGAFP

-Holding Ninth and Tenth Press Briefing & Media Advocacy Meeting and submission of event reports to SGAFP

-Holding Third Multi Stakeholder Advocacy & Adoption Meeting of SAFE, SASRF & SAARC in Pakistan and submission of event report/minutes of meeting to SGAFP

-Holding Eleventh Press Briefing & Media Advocacy Meeting/Project Closing Ceremony and submission of event report to SGAFP

-Submission of Post Project Work plan and Phasing Out Strategy to SGAFP

-Submission of Project Closeout plan

-Submission of Final Audit report


SAFE RULE BOOK
FINAL EDITION 

SAFE RULE BOOK - FINAL EDITION

Development of Capital Markets in Member Countries of the South Asian Association for Regional Cooperation

 

 
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