SEBI Current Affairs - 2020

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SEBI signs pact with Kazakhstan’s AFSA for mutual co-operation 

Markets regulator SEBI (Securities and Exchange Board of India) has signed a bilateral memorandum of understanding (MoU) with Kazakhstan-based Astana Financial Services Authority (AFSA) for mutual co-operation and technical assistance. The MoU was signed by SEBI Chairman Ajay Tyagi and the acting chief executive officer (CEO) of AFSA Mukhtar Bubeyev.

Key Highlights

The objective of pact is to strengthen cross border co-operation in area of securities regulation. Besides facilitating mutual assistance, this co-operation will further contribute towards efficient performance of supervisory functions, as well as enable effective enforcement of laws and regulations governing the securities markets.

SEBI has signed bilateral MoUs with securities regulators of a number of jurisdictions. It is also a signatory to multilateral MoU of International Organisation of Securities Commissions (IOSCO), an association of national securities regulatory commissions that regulate world’s securities and futures markets.

About Securities and Exchange Board of India (SEBI)

It is responsible for regulating Securities market in India. It was first established in 1988 as a non-statutory body for regulating securities market and was given Statutory Powers on 30 January 1992 through Securities and Exchange Board of India (SEBI) Act, 1992.

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Parliament passes International Financial Services Centre Authority bill, 2019

On December 13. 2019, the International Financial Services Centre Authority bill was passed by Rajya Sabha. It proposes to set up an authority to regulate financial services in the International Financial Services Centres in India.

Composition of the authority

According to the bill, the authority will comprise of nine members along with the chairperson. Among the nine members, two will be from Ministry of Finance and one each from SEBI, RBI, IRDAI and PRFDA. Two other officials are to be appointed on the recommendation of search committee. The members will have a term of three years.

Functions of the authority

The authority will regulate financial products like contracts of insurance, financial institutions and services, deposits and securities that were previously approved by regulators such as SEBI, RBI and IFSC. It has power to regulate services offered by financial bodies as notified by the Union Government. This makes it independent from the government and to work autonomously.

Performance Review Committee

Under the law, the authority will constitute Performance Review Committee that will review the functioning of the authority. It will consolidate the findings of the authority and submit a report to the authority at least once a year. The committee will comprise of at least two members of the authority.

International Financial Service Centre Authority Funds

The bill proposes setting up of International Financial Service Centre authority funds. The charges, fees collected will be received by the authority from different sources and will be credited to the fund. The fund will also be used to pay salaries and allowances of the employees and other expenses incurred by the authority.

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