In a major confidence building measure, India and China on Tuesday signed an agreement for setting up a mechanism to avert any untoward incident on border. The agreement was signed after two-days of talks between Special Representatives (SR) -- National Security Advisor Shivshankar Menon and Chinese State Councillor Dai Bingguo -- during which they noted the importance of regular high-level exchanges and strengthening cooperation across different areas, according to a report of Press Trust of India (PTI).