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

The MoU was signed on behalf of the DFSA by Chief Executive, Mr Paul Koster, and Mr Shri CB Bhave, Chairman of SEBI, on the eve of a Dubai International Financial Centre (DIFC) seminar entitled, ‘The India-UAE Partnership: Investments, Opportunities and Synergies’.

The seminar was held in Mumbai on Thursday 29 October, led by the Governor of the DIFC and Vice Chairman of the UAE Central Bank HE Dr Omar Bin Sulaiman, and Union Cabinet Ministers, Their Excellencies 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 the investors and to promote the development of, and to regulate the securities market.

Mr Paul Koster, Chief Executive of the DFSA said, “As the supervisor of one of the largest capital markets in the world, 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 multi-lateral MoU and, as such, has already shown its ability and willingness to co-operate and share information to international standards. This bi-lateral MoU is a significant initiative, recognising the importance of these arrangements for co-operation and information sharing between the two regulators.”

“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 co-operation between the DFSA and SEBI as regulators of these firms. As more financial services firms join the DIFC from India, this bi-lateral 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 co-ordination and co-operation 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”, Mr Koster said.

Mr Shri CB Bhave, Chairman of SEBI said, “This arrangement establishes a framework for mutual assistance, strengthening of cross-border co-operation and contributes towards efficient performance of the supervisory functions and effective enforcement of the laws and regulations governing the markets in our respective jurisdictions.”