The European Securities and Markets Authority (ESMA), regulator and supervisor of the financial markets of the European Union (EU), has signed a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI) to facilitate cooperation and the exchange of information regarding the recognition of central counterparties (CCPs) established in India and supervised by SEBI.
As explained by ESMA, following the signing of a memorandum of understanding between ESMA and the Reserve Bank of India (RBI) earlier this year, this agreement "represents a significant further step towards the restoration of EU clearing members' access to Indian clearing houses" and comes after more than two years of sustained collaboration between ESMA and Indian authorities.
This Memorandum of Understanding is the result of "a close and constructive cooperation between ESMA and SEBI, and reflects ESMA's strong commitment to international supervisory cooperation" and mutual support to promote safe, resilient, and open financial markets.
Next steps
The memorandum of understanding will allow clearing houses established in India and supervised by SEBI to reapply for their recognition under the EMIR Regulation. This is a fundamental requirement of Article 25 of the EMIR Regulation for the recognition of third-country clearing houses by ESMA.
ESMA continues discussions with the International Financial Services Centres Authority (IFSCA) with a view to concluding a similar cooperation agreement.
