Saarc mutual fund in Oct

Star (August 16, 2011)

South Asian Federation of Exchange (SAFE) will launch a 'Saarc mutual fund' in October for capital markets in South Asia, an official said yesterday.
“We will finalise the units of fund in October in Dubai after a meeting with all South Asian countries,” said Fakhor Uddin Ali Ahmed, SAFE's vice president.
The fund will be invested in the stockmarkets in South Asian countries, said Ahmed, also a president of Chittagong Stock Exchange.
“We will invite South Asian countries to invest in our stockmarket,” he said.
“Bangladesh will face some barriers in transferring the fund abroad. So a discussion will be held on the issue at the meeting,” he added.
SAFE took the decision on July 6 after a meeting of its executive committee in Nepal.
Yuvraj Khatiwada, governor of Nepal Rastra Bank, the central bank of the South Asian country, showed interests in the Saarc Mutual Fund.
Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka will sponsor the fund, he added.
The asset manager, trustee and custodian of the fund will come from the Saarc countries, he added.
“We will supply liquidity from the fund for Saarc countries to face a liquidity crunch and stabilise the stockmarkets,” he added.
SAFE is a forum launched by bourses in South Asia to promote securities markets in the region. The inception of SAFE marks an important milestone in the growth of South Asian capital markets towards regional and global integration.
Globalisation hinges on interdependence among nations in business, politics and cross-cultural activities which SAFE should facilitate in the Saarc countries, Ahmed said.
The members of SAFE have agreed to work toward setting common standards, including adoption of international accounting standards and best business practices in the capital markets.