Press Release

A Memorandum of Understanding was entered into between the Forward Markets Commission, India and the China Securities Regulatory Commission, China at New Delhi on 21 November 2006. The MoU was signed by Shri. S. Sundareshan, Chairman, FMC on behalf of the Forward Markets Commission and Mr. SUN Yuxi, Ambassador of China to India, on behalf of the China Securities Regulatory Commission (CSRC). The MoU was signed in the presence of the Hon’ble President of China, Mr. Hu Jintao and the Hon’ble Prime Minister of India, Shri. Manmohan Singh, after their Summit meeting at Hyderabad House, New Delhi.

The Memorandum of Understanding between FMC and CSRC promotes mutual assistance and exchange of information to assist them to perform their respective functions in the following areas:

• Ensuring the full and fair disclosure of information relevant to investors
• Enforcement of the laws and rules relating to dealing in, arranging deals in, managing and advising on commodity futures
• Promoting and securing the fitness and properness of brokers/dealers and advisers in commodity futures markets, and promoting high standards of fair dealing and integrity in the conduct of business of these institutions and professionals
• Supervising and monitoring the trading, clearing and settlement , and other activities of commodity futures markets, and their compliance with relevant laws and regulations
• Detecting market manipulation and other deceptive and fraudulent practices concerning trading of commodity futures contract

The MoU provides a framework for cooperation between the two authorities by opening channels of communication, increasing mutual understanding and exchange of regulatory and technical information.

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          Dated the 21^st November, 2006

Forward Markets Commission

                                                    ‘Everest’, 3^rd Floor,

                                                    100, Marine Drive,

                                                         Mumbai-400 002