Reliance Capital gets approval in Malaysia

Mumbai, Nov 20: The Reliance Capital Asset Management Company has received permission from the Malaysian Securities Commission (SC), to start its operations in that country, Ms Zarinah Anwar, Chairman of Securities Commission, Malaysia, in her keynote address to a one-day Indo-Malaysia Capital Market Forum here, said the permission was granted by it two days ago.

Highlighting the need for players in the capital market in both the countries to tap the rich potential in both India and Malaysia, she said other sectors such as power, railways and realty, had enjoyed greater cooperation in joint ventures. During the 1998-2008 decade, 20 Malaysian companies had completed 58 construction projects in India worth $2.6 billion.

''However when we look at the financial sectors and capital markets, the level of cross border participation and investment is still relatively low and certainly not reflective of our existing trading and direct investment relationships,'' she said, adding ''given our mandate to develop capital markets, both SC Malaysia and Securities and Exchange Board of India (SEBI) are happy to be catalysts in promoting greater linkages between our markets''.

She said the Bond market in Malaysia has not only been established as a major source of financing for corporates in that country, but had also emerged as one among the largest local currency bond markets in the region, with a size of $147 billion.

SEBI Chairman C B Bhave, in his inaugural address, reiterated that both SEBI and its Malaysian counterpart could promote linkages between the financial sectors in the two countries and promote cross border investments.

UNI