Colombo Stock Exchange signs MoU with Maldives Stock Exchange

From left: CSE Chief Executive Officer Rajeeva Bandaranaike, CSE Chairman Vajira Kulatilaka and MSC Managing Director/Chief Executive Officer Hassan Manik

The Colombo Stock Exchange (CSE) signed a Memorandum of Understanding (MoU) with the Maldives Stock Exchange (MSE) in order to help foster prosperity of the respective financial markets, promote cross border investment, cross border listing and explore other opportunities for cooperation between the two Exchanges.  

The Exchanges anticipate developing a closer working relationship in the future and wish to maintain channels of communication for exchange of information, knowledge transfer, sharing of technology and other commercial purposes. 

The MoU delineates the following areas of cooperation; establishing a system to support marketing of local issuances, examining the possibility of creating a framework for cross-listing and dual listing of securities, identifying a mechanism for cross-border regulation of companies listed on the Exchanges, mutual exchange of information on business operating models and related improvement opportunities, examining the mechanism of trading securities listed in both Exchanges, sharing expertise, information and technology to facilitate and encourage the development of the respective capital markets and cooperation on enhancing the mutual knowledge and understanding of the products, market institutions and intermediaries in the respective jurisdiction. 

“The CSE is extending its reach beyond borders to cooperate commercially with its peer exchanges in the region, to collectively uplift the performance of regional Exchanges. We recently hosted the South Asian Investment Conference and took over the Chairmanship of the South Asian Federation of Exchanges (SAFE) and the relationships forged through these regional bodies have already begun to yield positive results,” CSE Chairman Vajira Kulatilaka said at the conclusion of the signing of the MOU.

“We are very pleased to be in Sri Lanka our very close neighbour and also glad to sign a MoU which will further strengthen our relationship. This MoU will help both our Exchanges to learn from each other’s experiences. In comparison to the CSE the MSE is a very small Exchange, therefore there are many areas in which the CSE can help the MSE to grow and develop,” MSC Managing Director/Chief Executive Officer Hassan Manik said. 

“The Colombo Stock Exchange seeks to foster regional linkages with Exchanges in order to foster growth and collective development within our geographic influence. The Maldives is a partner in this process and the CSE has shared cordial and close relations with MSE since its inception in 2002 and this MoU is the formalisation of this long standing relationship,” CSE Chief Executive Officer Rajeeva Bandaranaike said. 

The Maldives Stock Exchange was first established in 2002 and was operated by the Capital Market Development Authority (CMDA). In 2008 Maldives Stock Exchange (MSE) was licensed as a private sector exchange by the CMDA under the Maldives Securities Act. As such the MSE is operated by the Maldives Stock Exchange Company Ltd. 

The primary function of MSE is to facilitate companies raising capital through the issue of new securities. The secondary function of the MSE is to provide a regulated market for the trading of existing stocks between investors. The MSE is also the centre for trading, reporting and pricing of the stocks. The trading information is released to the public by the MSE ensuring transparency in market dealings.