New Delhi : The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the signing of Bilateral Memorandum of Understanding between Securities and Exchange Board of India and Manitoba Securities Commission, Canada.
Benefits:
- The MoU, inter alia, seeks a formal basis for cross-border co-operation in the area of securities regulations, would facilitate mutual assistance, contribute towards efficient performance of supervisory functions, aid in imparting technical domain knowledge and enable effective enforcement of the laws and regulations governing securities markets.
- The MoU would also make investors from Manitoba eligible for registration as an FPI with SEBI.
Impact:
Entities located in the province of Manitoba, Canada are desirous of registration as Foreign Portfolio Investor (FPI) with SEBI, for which one of the pre-conditions is that the securities market regulator of a foreign country / province should be a signatory to the International Organization of Securities Commissions’ Multilateral memorandum of Understanding (IOSCO MMoU), signing a bilateral MoU with SEBI is essential for permitting entities from Manitoba to be registered as FPI with SEBI. Around twenty Manitoba-=domiciled FPIs with total Assets Under Custody of Rs.2,665 crore are expected to benefit by signing of this bilateral MoU and would be eligible to continue investing in the Indian markets.
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