DFSA in talks with Damas over deals by ex-CEO

DUBAI - The Dubai Financial Services Authority (DFSA) said it is in dialogue with Nasdaq Dubai and Damas International Ltd following the resignation of the jewellery firm's chief executive after he disclosed alleged "unauthorised transactions."

The authority said in response to questions from Zawya Dow Jones Tuesday, that as the regulator of the exchange it "has and will continue to have dialogue" with both parties.

In a separate statement on its Web site on Tuesday, the regulator said it "has been closely monitoring the situation and trading in the market. It has been proactive in ensuring that it discharges its role to maintain the integrity of the market."

Shares in Damas resumed trading on Tuesday after the company said its chief executive Tawhid Mohammed Taher Abdulla had stepped down after he told the board about "what is understood to be unauthorised transactions conducted by him.

The full extent of these transactions has not been ascertained at this time but the company's initial estimate is that these transactions could amount to approximately $165 million."

Damas shares opened flat on Nasdaq Dubai in the morning.

The resignation is the latest corporate scandal to engulf Dubai after a series of damaging investigations that began 18 months ago led to the arrest of dozens of senior executives at some of the emirate's biggest companies.