India-Luxembourg: Cabinet approves the proposal of SEBI to sign Bilateral MoU
The Union Cabinet chaired by the Prime Minister has given its approval to the proposal of Securities & Exchange Board of India (SEBI). SEBI has proposed to sign a bilateral Memorandum of Understanding (MOU) between Securities and Exchange Board of India and Financial & commission de Surveillance du Secteur Financier (CSSF), Luxembourg.
Why this MoU has been signed?
The MoU has been signed with an objective of strengthening the cross border cooperation. The MoU seeks to cooperate in the area of securities regulations. It further seeks to facilitate the mutual assistance and to contribute towards the efficient performance of the supervisory functions that aid in imparting the technical domain knowledge. It will also enable the effective enforcement of the laws and regulations that governs the securities markets of India and Luxembourg.
- The proposed bilateral MOU would contribute in strengthening the information sharing framework that leads to effective enforcement of securities laws.
- It will also help in establishing a technical assistance programme.
- This technical assistance programme will provide consultations to the Authorities on matters related to the capital markets, capacity building activities and training programmes for the staff.
Securities and Exchange Board of India (SEBI)
The SEBI was established under the Securities and Exchange Board of India Act, 1992. It regulate the securities markets in India. The SEBI was established with the purpose of protecting the interest of the investors. It also regulate and promote the development of securities markets in India. The primary functions of SEBI include-
- Registration, Regulation and Supervision of intermediaries that are operating in the securities market;
- To promote and regulate the self-regulatory organizations;
- To prohibit the fraudulent and unfair trade practices related to securities markets; and
Commission de Surveillance du Secteur Financier (CSSF)
CSSF is the regulator of Luxembourg. It is a public law entity having administrative and financial autonomy. It was established by the law in December 1998. The CSSF is the competent authority that supervise the entire Luxembourg financial centre. However, it does not regulate the insurance sector. The CSSF is legally responsible to regulate and supervise the securities market.