Singapore - Singapore Exchange Limited (SGX) and Karachi Stock Exchange (KSE) have signed a memorandum of understanding (MoU) to collaborate for the benefit of the financial services industries in Singapore and Pakistan, officials said Thursday.

The MOU aims to foster a closer relationship between the two exchanges.

The pact, which was signed in Singapore on Wednesday, includes sharing best practices regarding each exchange's products as well as the operation and governance of their respective markets.

"This MoU fosters a closer relationship between the two exchanges. We look forward to working with KSE to help develop our respective financial markets," said SGX chief executive officer Hsieh Fu Hua.

"Collaborations amongst exchanges have been increasingly important in the development of the emerging capital markets. A lot can be learnt from SGX on the demutualisation front as KSE is currently in the process of demutualization," added KSE managing director Adnan Afridi in a statement.

This is the second MoU penned by SGX this month, having signed a similar pact with the Bahrain Stock Exchange on October 14.

SGX's other pacts and partnerships with bourses includes a 20 per cent equity stake in the Philippine Dealing System Holdings Corp and a 5 per cent stake in Bombay Stock Exchange Ltd since last year. (dpa)