The Union Cabinet on Wednesday approved signing of a pact between the Securities and Exchange Board of India (Sebi) and Canada’s Manitoba Securities Commission. The bilateral Memorandum of Understanding (MoU) seeks to have a formal basis for cross-border co-operation in the area of securities regulations.
It 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, according to an official release. The MoU would also make investors from Manitoba eligible for registration as FPIs (Foreign Portfolio Investors) 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,” the release said.
Entities located in the province of Manitoba that are desirous of getting registered as FPIs with Sebi need to fulfill a pre-condition 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 FPIs, the release said.