SEBI Current Affairs - 2019
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The 20th Meeting of Financial Stability and Development Council (FSDC) was held under the Chairmanship of Smt. Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs.
Key Highlights of Meeting
The Meeting reviewed current global and domestic economic situation, overall macro-economic situation and financial stability issues including those concerning Banking and Non Banking Financial Company (NBFC).
Council was also informed about progress made towards setting-up of Financial Data Management Centre (FDMC) under the aegis of FSDC, so as to facilitate integrated data aggregation and analysis as also a Computer Emergency Response Team (CERT-Fin) towards strengthening cyber security framework for financial sector.
Council also held consultations to obtain inputs and suggestions of Financial Regulators for Union Budget 2019-20. All the regulators presented their proposals for upcoming Budget. The financial sector regulators includes- SEBI (Capital Market), RBI (Monetary Sector), IRDA (Insurance), PFRDA (Pension) and IBC (Insolvency & Bankruptcy).
Council also took note of activities undertaken by FSDC Sub-Committee which is chaired by Reserve Bank of India (RBI) Governor and action taken by Members on decisions taken in earlier Meetings of FSDC.
What is Financial Stability and Development Council?
The FSDC was constituted in December 2010. It is apex body of sectoral regulators and not a statutory body.
Objective: to strengthen and institutionalise mechanism for maintaining financial stability, promoting financial sector development and enhancing inter-regulatory coordination.
Function: Among other things, it deals with issues relating to financial stability, financial literacy, financial inclusion, financial sector development, inter–regulatory coordination and macro prudential supervision of economy which also includes functioning of large financial conglomerates. No separate funds are allocated to Council for undertaking its activities.
FSDC Sub-Committee: It deliberates on agenda items proposed by any member of FSDC Council which mainly include matters relating to financial stability, inter-regulatory coordination, and financial sector development.
Tags: 20th Meeting of Financial Stability and Development Council • CERT-Fin • Computer Emergency Response Team • FSDC • FSDC Sub-Committee • inancial Stability and Development Council • IRDA • PFRDA • RBI • SEBI • Smt. Nirmala Sitharaman • Union Minister of Finance and Corporate Affairs
A formal Memorandum of Understanding (MOU) was signed between Union Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI) for data exchange between two regulatory organizations and to tighten regulatory oversight.
Key Highlights of MoU
- The MoU was signed by Shri K.V.R. Murty, Joint Secretary (MCA) and Smt. Madhabi Puri Buch, Whole Time Member of SEBI in presence of senior officers from both organisations.
- Need: As private sector plays an increasingly vital role in economic growth of India, thus need of the hour is a robust Corporate Governance mechanism for transparent functioning.
Key Features of MoU
- It facilitates sharing of data & information and ensures seamless linkage for regulatory purposes between MCA and SEBI on a regular and automatic basis. In addition to regular exchange of data, both SEBI and MCA will also exchange with each other, any information available in their respective databases on request, for purpose of carrying out scrutiny, investigation, inspection and prosecution.
- It enables sharing of specific information like sharing details of suspended/delisted companies, financial statements filed with Registrar by corporates, shareholding pattern of companies, returns of shares allotment and audit reports relating to corporates.
- The MoU is an ongoing initiative of MCA and SEBI, who are already collaborating via various existing mechanisms. It comes into force with immediate effect from date it was signed.
- Data Exchange Steering Group has been constituted for fulfillment of undertaken initiative. It will meet periodically to review data exchange status and also take steps to further improve effectiveness of the data sharing mechanism.
- Significance: This MoU comes in wake of increasing need for surveillance in context of Corporate Frauds affecting important sectors of economy. Thus MoU marks beginning of a new era of cooperation and synergy between two crucial regulators in Indian economy.
About Securities and Exchange Board of India
- It is the regulator for securities market in India.
- Background: It was established on 12 April 12 1988 as a non-statutory body. It was accorded statutory status in accordance with provisions of Securities and Exchange Board of India Act, 1992.
- Function: It is a quasi-legislative, quasi-executive and quasi-judicial body. It can draft regulations, conduct inquiries, pass rulings and even impose penalties.
Tags: Indian Economy • Memorandum of Understanding • MoU • SEBI • Securities and Exchange Board of India • Shri K.V.R. Murty • Smt. Madhabi Puri Buch • Statutory Body • Union Ministry of Corporate Affairs