Sebi Signs MoU With CFTC To Synergise Operations, Develop Futures Market

Mumbai, April 29 | Updated: Apr 30 2004, 05:30am hrs
The Securities and Exchange Board of India (Sebi) has signed a memorandum of understanding (MoU) in Washington on Wednesday with US-based Commodity Futures Trading Commission (CFTC).

The MoU was signed by Sebi chairman GN Bajpai and James E Newsome, chairman CFTC. The MoU aims to strengthen communication channels and establish a framework for assistance and mutual co-operation between the two organisations, Sebi said in a release. The release further said, the MoU marks the beginning of a greater collaboration between the Sebi and CFTC. It further aims to effectively regulate and develop futures markets in view of the greater cross-border trade and cross-market linkages brought about by the globalisation of financial markets. The two authorities intend to consult periodically about matters of mutual interest in order to promote co-operation and market integrity. Moreover, Sebi and CFTC plan to safeguard the interest of futures and options market participants.

Furthermore, CFTC would also provide technical assistance for development of futures markets in India.

On the occasion of signing of the MoU, Mr Bajpai said: The co-operation is crucial for the exchange of information and skills amongst the jurisdictions because of the integrated financial environment.

Mr Newsome reiterated that CFTC has a long tradition of developing co-operative arrangements with foreign financial authorities.

CFTC was created by the Congress in 1974 as an independent agency to regulate commodity futures and options market in the United States of America (USA).

With this, Sebi has signed sixth MoU with its international counterparts. Sebi had earlier signed MoUs with Securities and Exchange Commission, USA, Securities Commission - Malayasia, Financial Services Commission - Mauritius, Securities and Exchange Commission - Sri Lanka and the Monetary Authority of Singapore. As an active member of the International Organisation of the

Securities Commission (IOSCO), Sebi is committed to ensure fair and orderly development of the securities markets and co-operation with other global regulators, the release added.