The Reserve Bank of India and the European Securities and Markets Authority – ESMA have signed a Memorandum of Understanding concerning cooperation and exchange of information related to Central Counterparties regulated and supervised by RBI. According to an official press release issued by the RBI this evening, the MoU establishes a framework for ESMA to place reliance on RBI’s regulatory and supervisory activities while safeguarding the European Union’s financial stability.
The MoU also demonstrates the importance of cross-border cooperation to facilitate international clearing activities. The MoU will allow the Clearing Corporation of India Limited, a Central Counterparty established in India and supervised by RBI, to reapply for recognition under the European Market Infrastructure Regulation.
Meanwhile, in a statement, ESMA said that the agreement marks a significant step towards restoring access for EU clearing members to Indian central counterparties and follows two years of sustained engagement between ESMA and RBI. It further said that the MoU reflects ESMA’s strong commitment to international supervisory cooperation and mutual support to advance safe, resilient and open financial markets.
The ESMA statement added that it is also continuing discussions with the Securities and Exchange Board of India and the International Financial Services Centres Authority to conclude similar cooperation arrangements.
