Sebi has entered into pacts with 27 securities market regulators in the European Union (EU) for consultation, cooperation and exchange of information related to the supervision of Alternative Investment Fund Managers.
The bilateral MoUs were signed in pursuance of the EU Alternative Investment Fund Managers Directive (AIFMD) which requires that adequate supervisory cooperation arrangements are put in place between EU and non-EU supervisory authorities including Sebi. AIFMD was adopted by the European Council and Parliament in July 2011.
Under the AIFMD framework, such co-operation arrangements between EU and non-EU authorities is a pre-condition for allowing greater market access and cross border functioning of the AIF business.
“These MoUs would thus enable Indian fund managers to manage or market AIFs in the EU region and the EU fund managers to manage or market AIFs in India,” a official press release by the market regulator Securities and Exchange Board of India (Sebi) said.
“As such, these MoUs would mutually benefit the Alternative Investment Funds Industry of the two jurisdictions,” the statement added.
The bilateral MoUs were signed on July 28, 2014.
“These bilateral arrangements mark a crucial step in Sebi’s commitments towards enhancing mutual co-operation with the securities markets’ regulatory authorities world over,” the market regulator said.
The text of the MoUs was finalised by Sebi and European Securities and Markets Authority (ESMA).
“While negotiated these MoUs centrally on behalf of the EU/EAA securities regulator, the said MoUs will operate as bilateral arrangements between Sebi and each of the said securities regulators,” the statement said.
ESMA is an independent EU Authority that works in close co-ordination with the EU in standard setting and international supervisory co-operation.
So far, Sebi has signed 20 bilateral MoUs and one letter of Intent for mutual assistance and cooperation.
Sebi is also a signatory to the IOSCO Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information.