MUMBAI, February 14: The first meeting of the Asia Pacific Regional Committee (APRC) of the International Organisation of Securities Commissions (IOSCO) held in India concluded on Friday with a stress on the need for mutual cooperation and exchange of information in several areas.In the aftermath of the recent south-east Asian crisis, members resolved to provide mutual assistance in all areas including the provision of information to enable a member to judge whether a market intermediary in its jurisdiction is `fit and proper'. When the Peregrine crisis broke into the open, members of the APRC had been in constant touch with each other in order to be briefed on the nature and extent of crisis. At their last meeting, APRC members had resolved to share publicised information with each other. The present meeting saw them resolve to move a step further. Members also resolved to keep other members informed about major regulatory developments in their markets in relation to the regulation of markets andintermediaries and also to move towards signing bilateral memoranda of understanding or other arrangements.
It was also agreed that securities regulators should be adequately trained to meet ever-changing market conditions. A regional training project is under planning under the auspices of the APRC, the IOSCO secretariat, the World Bank, ADB and APEC finance ministers.
Briefing newspersons after the meeting, SEBI chairman DR Mehta, who is also the chairman of the APRC, said that the deliberations brought to light the fact that most of the APRC member countries were at similar stages in several regulatory aspects. On mutual fund regulations, they felt that the disclosure norms being pursued by SEBI were eminently sensible, especially the issue of sending an abrigded prospectus to investors. Countries like Australia and Hong Kong are also deliberating on the issue of responsibilities of trustees in a mutual fund and whether the trust structure is the best for a mutual fund.
Moreover, SEBI is also likelyto draw on the experience of New Zealand in the regulation of collective investment schemes. The representative from New Zealand advised SEBI to try and make regulations that will not kill the agro industry. Members also deliberated on the issue of disclosure norms for companies with infrastructure projects. "We might have to think of special disclosures for these companies and also consider whether it is wise to let them tap the retail investor directly," said Pratip Kar, executive director of SEBI, after discussions with other members of the committee.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
