Sebi to ink MoUs with four foreign market regulators

Sebi chairman M Damodaran is the chairman of IOSCO’s Emerging Markets Committee. Apart from the four MoUs, the global regulators and securities market participants will discuss current market developments and trends. They will deliberate on various issues at closed door meetings during the first two days of the sessions.

The last two days will witness open sessions. The watchdogs will deliberate on the issue of how different regulators in each of the relevant jurisdictions should discharge the individual responsibilities arising from the operations of the market — and ensure that they address any additional regulatory risk that arises from the cross-border nature of the market. They will also take up the issue of how to promote effective regulation and avoid unnecessary costs.

The global regulators will pay special attention to hedge funds, which are posing regulatory challenges in both the developed and developing economies. The continuing rapid growth of hedge funds and other private equity vehicles have prompted some regulators to review their frameworks and focus on key inter-related areas of growing concern, including counter-party risk management, operational risk and valuation practices for complex and illiquid financial instruments.