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SEBI-ESMA MoU on Central Counterparties Signed

7 September 20261 min read
BANKING & FINANCESEBI-ESMA MoU onCentralCounterpartiesSigned7 September 2026safalsetu.com

Why in the news

India’s market regulator and its European counterpart agreed a fresh understanding on overseeing clearing entities.

Key facts

  • Parties: SEBI and the European Securities and Markets Authority (ESMA).
  • Subject: cooperation on Central Counterparties (CCPs).
  • The new MoU supersedes the 2017 MoU.
  • Scope: information sharing and supervisory cooperation.
  • Indian CCPs may reapply for recognition under Europe’s EMIR framework.

About CCPs

  • A CCP sits between buyers and sellers in a trade and helps handle counterparty risk.

Exam angle

  • Regulators involved: SEBI (India) and ESMA (Europe).
  • Framework named: EMIR.
  • Concept: a CCP acts as an intermediary to manage counterparty risk.

Test yourself

1. SEBI signed an MoU on Central Counterparties with which European body?

The partner was the European Securities and Markets Authority (ESMA).

2. The new SEBI-ESMA MoU replaces an earlier MoU from which year?

It supersedes the 2017 MoU.

3. What does a Central Counterparty (CCP) chiefly help manage between buyers and sellers?

A CCP stands between the parties and manages counterparty risk.

This topic is part of Daily Current Affairs 6 & 7 September 2026 (21 topics).

All topics of the dayDay quizSeptember 2026

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