The Securities and Exchange Board of India (SEBI) has signed a bilateral memorandum of understanding (MoU) with securities market regulators of 27 member States of the European Union to manage alternative investment funds in Europe.
The agreement was signed for consultation, cooperation and exchange of information related to the supervision of Alternative Investment Fund Managers.
The 27 bilateral MoUs were signed in response of the EU Alternative Investment Fund Managers Directive (AIFMD) which requires that adequate supervisory cooperation arrangements are set up between EU and non-EU supervisory authorities including SEBI.
As part of the AIFMD structure, the co-operation arrangements between EU and non-EU authorities will enable greater market access and cross border functioning of the AIF business.
Additionally, the pacts will allow fund managers in India to manage or market AIFs in the EU region and the EU fund managers to manage or market AIFs in India. Also, the MoUs will reciprocally benefit the Alternative Investment Funds Industry of the two jurisdictions.
Under the bilateral agreements, SEBI and the EU authorities will cooperate with each other in the interest of fulfilling their respective regulatory mandates, particularly in the areas of investor protection, fostering market and financial integrity, and maintaining confidence and systemic stability.
ESMA is an independent EU Authority that works in close co-ordination with the EU in standard setting and international supervisory co-operation.
Till date, SEBI has inked 20 bilateral MoUs and one letter of Intent for mutual assistance and cooperation.
SEBI said: "These bilateral arrangements mark a crucial step in SEBI’s commitments towards enhancing mutual co-operation with the securities markets’ regulatory authorities’ world over."
SEBI is also a signatory to the IOSCO Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information.