The European Securities and Markets Authority, or ESMA, has signed a memorandum of understanding with the Securities and Exchange Board of India, or SEBI, to support cooperation and information sharing on the recognition and supervision of Indian central counterparties (CCPs). The agreement adds to an earlier MoU signed this year between ESMA and the Reserve Bank of India and is aimed at restoring access by EU clearing members to Indian CCPs. Under the arrangement, CCPs established in India and supervised by SEBI will be able to reapply for ESMA recognition under the European Market Infrastructure Regulation, or EMIR. ESMA also said it will keep talking with the International Financial Services Centres Authority, or IFSCA, in an effort to reach a similar cooperation arrangement.
ESMA has signed a memorandum of understanding with the Securities and Exchange Board of India, or SEBI, to strengthen cooperation and information sharing on the recognition and supervision of Indian central counterparties, or CCPs.
Cooperation framework for Indian CCP recognition
The agreement sets out a framework for coordination between the two regulators on the recognition and oversight of Indian CCPs. It is focused on regulatory cooperation and the exchange of information tied to that process.
Follows an earlier MoU with the Reserve Bank of India
The move comes after ESMA signed a separate MoU earlier this year with the Reserve Bank of India, or RBI. The stated aim is to restore access for EU clearing members to Indian CCPs. According to the report, the step follows more than two years of continued engagement between the two sides.
SEBI-supervised CCPs can reapply under EMIR
Under the agreement, CCPs established in India and supervised by SEBI will be able to reapply for ESMA recognition under the European Market Infrastructure Regulation, or EMIR.
ESMA also said it will continue discussions with the International Financial Services Centres Authority, or IFSCA, with the goal of reaching a similar cooperation arrangement.
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