Cabinet approves signing of MoU between SEBI and FRC Mongolia
The Union Cabinet chaired by Prime Minister, Shri Narendra Modi, today approved the proposal to sign a bilateral Memorandum of Understanding between the Securities and Exchange Board of India (SEBI) and the Financial Regulatory Commission, Mongolia (FRC).
FRC, like SEBI, is a co-signatory to the International Organization of Securities Commissions (IOSCO MMoU) Multilateral Memorandum of Understanding. However, the IOSCO MMoU does not have in its scope the provision of technical assistance. The proposed bilateral MoU would not only help strengthen the information sharing framework leading to effective securities law enforcement, but also establish a technical assistance program.
The technical assistance program would benefit the Authorities through consultation on capital market issues, capacity building activities and staff training programs.
The Securities and Exchange Board of India (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 interests of investors and to regulate and promote the development of securities markets in India.
SEBI is empowered to request information from or furnish information to other authorities, in India or abroad, having similar functions to those of the Council, in matters relating to the prevention or detection of violations in securities laws, subject to the provisions of other laws.
To provide information to an authority outside India, SEBI may enter into an arrangement, agreement or understanding with such authority with the prior approval of the central government. In this context, FRC asked SEBI to sign a bilateral memorandum of understanding for mutual cooperation and technical assistance. So far, SEBI has signed 27 bilateral MoUs with financial market regulators from other countries.
Created in 2006, the Financial Regulation Commission (FRC) is a parliamentary authority mandated to supervise and regulate the non-banking sector; including insurance and securities markets, and actors in the microfinance sector.
The FRC is responsible for providing stable and sound financial markets. The Commission exercises power over non-banking financial institutions, insurance companies and intermediaries, securities firms and savings and credit cooperatives. At the same time, it guarantees the rights of individual financial market customers (securities holders, domestic and foreign investors and policyholders) and protects against financial malfeasance.