Dubai regulatory agency boosts ties with Indian body

Mumbai: The Dubai Financial Services Authority (DFSA) entered into a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI) on Wednesday.

The MoU was signed on behalf of the DFSA by chief executive Paul Koster and Shri C.B. Bhave, chairman of SEBI, on the eve of a Dubai International Financial Centre (DIFC) seminar titled The India-UAE Partnership: Investments, Opportunities and Synergies.

The seminar was held in Mumbai on Thursday led by the governor of the DIFC and vice-chairman of the UAE Central Bank, Dr Omar Bin Sulaiman, and Union Cabinet Ministers Vayalar Ravi and Kamal Nath.

The Securities and Exchange Board of India was established in 1992 to regulate the securities markets in India, to protect the interest of investors and to promote the development of, and to regulate the securities market.

"As the supervisor of one of the largest capital markets in the world, the SEBI is an active member of the International Organisation of Securities Commissions (IOSCO) and acknowledged as one that is committed to world best practice. SEBI is, like the DFSA, a signatory to IOSCO's multilateral MoU and, as such, has already shown its ability and willingness to cooperate and share information to international standards.

"This bilateral MoU is a significant initiative, recognising the importance of these arrangements for cooperation and information sharing between the two regulators," Koster said.

Information sharing

"There are already a number of branches of Indian firms operating in the DIFC so this agreement, which reflects the responsibilities of both agencies, will enhance information sharing and cooperation between the DFSA and SEBI as regulators of these firms. As more financial services firms join the DIFC from India, this bilateral relationship will assume increasing importance as both regulators rely on the quality of regulatory standards administered in the other's jurisdiction.

"In the past year, the importance of effective coordination and cooperation between regulators cannot be overstated. We are looking for better ways of working together to resolve current problems and prevent their repetition. Agreements such as this will make a difference", he added.

The Chairman of SEBI said: "This arrangement establishes a framework for mutual assistance, the strengthening of crossborder cooperation and contributes towards efficient performance of the supervisory functions and effective enforcement of the laws and regulations governing the markets in our respective jurisdictions."