New Delhi: Market watchdog Sebi has favoured setting up a separate body for collaboration on research, education, training and technical assistance among the global regulators at their international forum IOSCO.
The International Organisation of Securities Commissions (IOSCO) said in a statement that the members of its Emerging Markets Committee (EMC) has "voiced overwhelming support for the proposal to establish an IOSCO Foundation..."
This Foundation would be based on three pillars -- research, education and training, and technical assistance.
Welcoming the initiative, Securities and Exchange Board of India (Sebi) Chairman U K Sinha said that this Foundation "would go a long way in benefitting the development and effective regulation of securities markets across IOSCO membership in general and emerging markets in particular."
IOSCO said increased funding of research, education and training, and technical assistance activities will be of particular benefit to emerging markets, especially at a time of growing demand for market-based finance and constraints.
The emerging market members of the IOSCO, including Sebi, met in Santiago de Chile this week and discussed measures to be taken for emerging securities markets to play a bigger role in driving growth in the global economy.
EMC Chairman Vedat Akgiray of the Capital Markets Board, Turkey said: "... As the future candidates for being developed economies, 'proper' securities regulation in today's emerging markets is tantamount to 'proper' regulation of tomorrow's developed markets."
Ranjit Ajit Singh, the Vice Chair of the EMC and Chairman of Securities Commission Malaysia said: "Our role as securities regulators in emerging markets has become undeniably more challenging as capital markets in emerging economies grow in size and take on a more significant role in financing global economic growth.
"The Emerging Markets Committee will therefore need to play an increasingly more significant role within IOSCO and the wider regulatory policy framework to contribute to international efforts in regulatory reform and market stability," Singh said.
First Published: Wednesday, November 21, 2012, 14:27