Mumbai … To promote the development of securities markets in the region, South Asian Federation of Exchanges (SAFE) signed a Memorandum of Understanding (MoU) with Dow Jones Indexes Inc, New York. Mr. Rajnikant Patel, Chairman, SAFE and Managing Director & CEO, Bombay Stock Exchange and Mr. Sumeet Nihalani, Senior Director, Asia Pacific Sales, Dow Jones Indexes signed the MOU.

The agreement is a tripartite exchange data agreement for the launch of a South Asian Index signed between South Asian Federation of Exchanges (SAFE), Dow Jones AER Company, Inc. and the Bombay Stock Exchange Ltd., (a member of SAFE). The purpose of launching a unified regional index is to promote the region as an important asset class / investment destination.

Signing the MOU, Mr. Rajnikant Patel, Chairman, SAFE and Managing Director & CEO, Bombay Stock Exchange, said, “The imperatives of globalization necessitate increasing interdependence among nations in terms of business, politics and cross-cultural activities. Consequently, capital markets in South Asia can no longer afford to remain insulated from each other or from the rest of the world. The markets have overlapping concerns and interests, which need to be recognized and addressed. The idea of a common INDEX to reflect the region’s performance, is the logical culmination of this realisation.”

SOUTH ASIAN INDEX (SAI)

The proposal for launching a South Asian Index was promoted by SAFE in its Executive Committee of 2006 and later approved in the Annual General Meeting of 2006, both held in Colombo Sri Lanka in November, 2006. The proposal detailed that the SAI would be aimed at measuring and reflecting performance of leading stocks of the prominent market sectors, listed at the SAFE Member Exchanges. SAI, by providing an overview of the performance of the SAFE equity markets as a regional grouping, would highlight its investment potential. It would also serve as an underlying tool for developing new investment products in the region.

Dow Jones Indexes, a unit of Dow Jones & Company, is a leading global full-service index provider that develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products.

The MoU is a milestone in the history of the capital markets of the South Asian region by achieving to bring together the representatives of various capital markets of the region and obtain their consent for extending required cooperation for the launch of the South Asian Index.

ABOUT SAFE

South Asian Federation of Exchanges (SAFE) is a forum launched by bourses in South Asia to promote the development of securities markets in the region. The inception of SAFE marks an important milestone in the march of South Asian capital markets towards regional and global integration.

The members of SAFE have agreed to work towards common standards including international accounting standards and best business practices in capital markets. SAFE will represent its members in related international forums, encourage cross-border listing, co-operate in human resource development, facilitate technology transfer among members and address other issues of common interest.

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