NSE, BSE APPLIED FOR ESMA MEMBERSHIP

Country's two leading stocks exchanges NSE and BSE have applied for registration with European securities market authority (ESMA), capital market regulator for the EU region. ESMA, an independent EU authority, which contributes towards safeguarding the stability of the European Union's financial system by ensuring the integrity, transparency, efficiency and orderly functioning of securities markets, as well as enhancing investor protection. Both NSE and BSE have sought ESMA registration, sources said without specifying further details. Indian market watchdog Securities and Exchange Board of India (Sebi) recently finalised information sharing and regulatory cooperation MoUs with 31 EU regulators at the initiative of the ESMA, as part of the European Union's Alternative Investment Fund Managers Directive (AIFMD). ESMA fosters supervisory convergence both amongst securities regulators and across financial sectors. The 31 regulators with whom Sebi has signed MoUs include those from the nations like Germany, France, Spain, Italy, Luxembourg, Denmark, Cyprus, Greece, Hungary, Norway, the UK, Liechtenstein, Belgium, the Netherlands, Portugal and Finland. As per the Memorandum of Understanding, they would be able to "consult, cooperate and exchange information" with regard to the supervision and oversight of Alternative Investment Funds (AIFs), as also their managers and other related entities.