(a) whether any agreement has reached between the National Stock Exchange of India and the Share Market of China;
(b) if so? the details thereof;
(c) the time by which the said agreement is likely to be implemented; and
(d) whether the interests of shareholders will be fully safeguarded under
the said agreement ?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) Yes. Sir. The National Stock Exchange of India Ltd. and Shenzhen Stock
Exchange, Shenzhen, China have entered into a Memorandum of
Understanding (MOU).
(b)to(d) The MOU is for the purpose of provision of information and cooperation
between the parties with respect to,inter alia, investor education and awareness,
regulatory framework, technology and development thereon, staff training, research
and seminars. The MOU is of non-binding nature for either party and is subject to
national laws in each country and international treaties at all times.The MOU does not
create any right to either party to demand delivery of information or services covered
under the MOU and neither party would in any circumstance be liable to the other for
any failure to provide any information or services. The MOU is for a period of five years
with effect from 1st November 2005, but can be terminated by either party with a three
months` prior notice to the other for any reason whatsoever.
The MOU will enable both exchanges to share information and experience for better
regulation of the market on issues such as risk containment measures, market
surveillance and membership standards, investor education and awareness which
will enable either exchange to adopt better practices prevailing in the other
exchange.