INDIA: SEBI signs MoU with 27 European Regulators

Monday August 4 2014

The Securities and Exchange Board of India (SEBI) and securities market regulators of 27 member States of the European Union/European Economic Authority (EEA) have signed bilateral Memorandum of Understanding (MoU) concerning consultation, cooperation and the exchange of information related to the supervision of the Alternative Investment Fund Managers (AIFM).

The bilateral MoUs were signed on July 28, 2014 in pursuance of the EU Alternative Investment Fund Managers Directive (AIFMD), adopted by the European Council and Parliament in July 2011.The AIFMD requires that adequate supervisory cooperation arrangements are put in place between EU and non-EU supervisory authorities including SEBI.

These MoUs would thus enable Indian fund managers to manage or market AIFs in the EU region and the EU fund managers to manage or market AIFs in India. As such, these MoUs would mutually benefit the Alternative Investment Funds Industry of the two jurisdictions.

The text of the MoU was finalised by SEBI and the European Securities and Markets Authority (ESMA), the independent EU Authority that works in close co-ordination with the EU in standard setting and international supervisory co-operation. While ESMA negotiated these MoUs centrally on behalf of the EU/EAA securities regulator, the said MoUs will operate as bilateral arrangements between SEBI and each of the said securities regulators.

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