Mumbai, May 26: Market cops in India and Hong Kong will pool resources and share information on a wide range of areas in cross-border trading and investment.

The understanding is the first that Sebi signed with a foreign regulator of a developed market but chairman M. Damodaran indicated that this is just the first in the series of pacts that would be sewn up in the months ahead.

“Sebi, as a dynamic regulator with a global vision, has been constantly endeavouring to align Indian securities markets with international standards,” Damodaran said.

Today’s letter of intent is the precursor to a long-term partnership that Sebi wants with SFC, the Hong Kong watchdog, to harmonise cross-border trading in several forms of investment.

SFC chief Andrew Sheng said the pact would open the way to greater cross-border trading in mutually acceptable financial products. Recent investigation by Sebi into the stock market crash of May 17, 2004 will also be helped if SFC offers information on Hong Kong investors.