SEBI to Join Global Regulators Group

India will soon join the high table of top securities regulators, including those from the US, the UK, France and Germany.

In recognition of the strides made by India in terms of creating an enhanced regulatory structure, International Organization of Securities Commissions (IOSCO), a global policy forum for securities regulators, based in Spain, has invited the Indian capital market regulator, the Securities and Exchanges Board of India (SEBI), to join its technical committee. SEBI will join the committee at its next meeting in June.

India is currently a member of the Emerging Markets Committee of IOSCO and by the latter’s recent decision, it will join 15 key decision-making members.

The IOSCO membership will enable a two-way exchange of experiences in regulating markets between Sebi and other members with a view to promoting development of domestic bourses and making a united effort to establish an effective surveillance of international securities transactions.

It will also enable SEBI and other members to promote the integrity of the markets by a rigorous application of the standards and by effective enforcement against offences.

Apart from SEBI, regulatory authorities from Brazil and China have also been invited to take up membership of the technical committee.

Kathleen Casey, chairman of IOSCO’s technical committee, said, “The changing landscape of the international financial system in this time of crisis demands that organisations, such as ours, reflect such changes in the composition of its membership. It is quite proper that the technical committee now should include members from India, Brazil and China within its ranks.”

The new members were chosen on the basis of the size of their capital markets, the international nature of their markets and the development of their regulatory system and authority.