ADGM signs cooperation agreement with Indian securities regulator

Abu Dhabi Global Market (ADGM), the capital’s financial free zone, has signed a deal with the Indian securities regulator to promote cross-border financial activities between the UAE and India.

Richard Teng, the chief executive of the ADGM watchdog, the Financial Services Regulatory Authority, signed a memorandum of understand (MoU) with Sunder Rajan Raman, executive of the Securities and Exchange Board of India (Sebi), “to enhance regulatory cooperation and facilitate cross-border activities,” a statement said.

It is the latest in a chain of MoUs and reciprocal agreements between ADGM and other markets, but because of India’s position as a major trade partner of the UAE and as a growing financial market, it is regarded as especially significant.

ADGM said: “The MoU establishes a framework for both authorities to provide assistance, exchange regulatory information and cooperate in supervising and overseeing the compliance of financial institutions with their respective securities and derivatives markets’ laws and regulations. It also enables both regulators to include initiatives such as joint training and technical assistance to strengthen the high regulatory standards and practice in both jurisdictions.”

Mr Teng said: “With the internationalisation of capital markets, ADGM is committed to establishing closer cooperation among global regulators to facilitate cross-border financial activities and uphold the integrity of markets. The growing economies of India and UAE will offer plenty of exciting investment opportunities for investors worldwide.

“This initiative further strengthens the working relationship with the Sebi for the mutual beneficial development of the financial services industry and the capital markets in our jurisdictions. By harnessing our joint efforts and cooperation, financial institutions and companies can further expand their global footprints through ADGM’s internationally recognised platform that is underpinned by global standards and best practices.”

Mr Raman of Sebi said: “It will enhance the bilateral cooperation between the authorities and would establish a stronger relationship with ADGM. With the markets getting interconnected and the financial entities operating globally, this will be a valuable tool for cross-border cooperation.

“The MoU will also promote exchange of information for technical assistance and training needs, apart from facilitating cross-border investments between the jurisdictions.”

India, with a population of around 1.3 billion, has more than 20 stock exchanges, although the biggest trading volumes are recorded on the Bombay Stock Exchange and the National Stock Exchange, both in Mumbai.

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