The Union Cabinet chaired by Prime Minister Narendra Modi on Friday approved a proposal for signing a bilateral Memorandum of Understanding (MoU) between the Securities and Exchange Board of India (SEBI) and the Financial Regulatory Commission, Mongolia (FRC).
The proposed bilateral MoU would, in addition to contributing towards strengthening the information sharing framework leading to effective enforcement of securities laws, also help in establishing a technical assistance programme, according to an official statement released after the cabinet meeting.
"The technical assistance programme would benefit the Authorities by way of consultations on matters relating to capital markets, capacity building activities and training programmes for the staff," it said.
Financial Regulatory Commission, Mongolia, like SEBI, is a co-signatory to the International Organization of Securities Commissions' Multilateral MoU (IOSCO MMoU). However, the IOSCO MMoU does not have under its scope the provision for technical assistance.
Established in 2006, the Financial Regulatory Commission (FRC), Mongolia, is a parliamentary authority mandated to supervise and regulate the non-bank sector; including the insurance and securities markets, and participants of the microfinance sector.
The FRC is responsible for providing stable and sound financial markets. The Commission exercises power over non-bank financial institutions, insurance companies and intermediaries, securities firms, and savings and credit cooperatives. At the same time, it ensures the rights of individual financial market clients (securities holders, domestic and foreign investors, and insurance policyholders) and protects against financial malpractices.
( With inputs from ANI )
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