The Union Cabinet on Wednesday approved signing a bilateral Memorandum of Understanding between markets regulator SEBI and Luxembourg's Financial and Commission de Surveillance du Secteur Financier.
"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.
"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," an official release said.
The proposal of SEBI for signing the MoU was approved by the Cabinet chaired by Prime Minister Narendra Modi.
Like SEBI, CSSF is a co-signatory to International Organization of Securities Commissions' Multilateral MoU.
CSSF is the competent authority for the prudential supervision of the entire Luxembourg financial centre, except for the insurance sector. It is also responsible for the regulation and supervision of the securities market.
The MoU is likely to strengthen cross border cooperation in the area of securities regulations and facilitate mutual assistance, contribute towards efficient performance of the supervisory functions and aid in imparting technical domain knowledge. This will enable effective enforcement of the laws and regulations governing the securities markets of India and Luxembourg, the release said.
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