New Delhi: On Wednesday, 9th December, the Union Cabinet chaired by Prime Minister Narendra Modi gave its approval for the proposal of Securities & Exchange Board of India (SEBI) to sign a bilateral Memorandum of Understanding (MOU) with Financial and Commission de Surveillance du Secteur Financier (CSSF), Luxembourg.
A statement issued by the Prime Minister’s Office (PMO) states that the MoU is likely to strengthen cross border cooperation in the area of securities regulations and facilitate mutual assistance, contribute towards the efficient performance of the supervisory functions, aid in imparting technical domain knowledge, and enable effective enforcement of the laws and regulations governing the securities markets of India and Luxembourg.
CSSF, like SEBI, is a co-signatory to the International Organisation of Securities Commissions’ Multilateral MoU (IOSCO MMoU). However, the IOSCO MMoU does not have under its scope the provision for technical assistance. The proposed bilateral MOU would, in addition to contributing towards strengthening the information sharing framework leading to effective enforcement of securities laws, also help in establishing a technical assistance program. The technical assistance program would benefit the authorities by way of consultations on matters relating to capital markets, capacity building activities and training programs for the staff., stated the PMO.
SEBI was established under the Securities and Exchange Board of India Act, 1992, to regulate the securities markets in India. The objectives of SEBI are to protect the interest of the investors and to regulate and promote development of securities markets in India. The main functions of SEBI include registration, regulation, and supervision of intermediaries operating in the securities market; promoting and regulating self-regulatory organisations; prohibiting fraudulent and unfair trade practices relating to securities markets; and calling from or furnishing to other authorities, whether in India or abroad, such information as may be necessary for the efficient discharge of its functions.
The Commission de Surveillance du Secteur Financier (CSSF) of Luxembourg is a public law entity, with administrative and financial autonomy, and established by the law of 23rd December 1998. The CSSF is the competent authority for the prudential supervision of the entire Luxembourg financial centre, except for the insurance sector. The CSSF is also legally responsible for the regulation and supervision of the securities market.
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