SEBI gets cabinet nod to sign MoU with European counterpart

The union cabinet on Wednesday accorded approval to a SEBI proposal to enter into an agreement of mutual cooperation with the European Securities and Markets Authority (ESMA).

"The Cabinet has given its approval to the Sebi for entering into a Memorandum of Understanding (MoU) with ESMA in relation to mutual cooperation," the Finance Ministry later said in a statement.

The MoU was likely to establish cooperation arrangements as a precondition for ESMA to recognise Central Counter Parties (CCPs) established in India and supervised by the Securities and Exchange Board of India (Sebi) to provide clearing services to members or trading venues established in the European Union.

The MoU would also provide ESMA with adequate tools to monitor the ongoing compliance by the covered CCPs, it said.

--IANS

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