The European Securities and Markets Authority (ESMA) has signed a Memorandum of Understanding with the Reserve Bank of India (RBI) to support cooperation and information exchange on central counterparties established in India and supervised by the RBI.
The agreement is required under Article 25 of the European Market Infrastructure Regulation for ESMA to recognise third-country CCPs. With the MoU in place, the Clearing Corporation of India Ltd can re-apply for recognition under EMIR.
According to ESMA, the MoU follows two years of engagement between the two authorities. ESMA also said it is continuing discussions with the Securities and Exchange Board of India and the International Financial Services Centres Authority to conclude similar cooperation arrangements.
