ESMA and RBI Sign New Information-Sharing Pact
Why in the news
The EU markets regulator ESMA and the RBI reached a fresh pact, closing a three-year standoff over whether the EU would recognise Indian central counterparties (CCPs).
Key facts
- The pact replaces the 2017 MoU and lets ESMA rely on the RBI’s supervisory framework.
- CCIL may now re-apply for recognition.
Timeline
| When | Event |
|---|---|
| March 2022 | Earlier MoU expired |
| October 2022 | ESMA withdrew recognition of six Indian clearing houses |
| Latest | New pact signed with the RBI |
Background
- ESMA sought direct supervisory access; Indian regulators opposed foreign inspection.
- Houses affected: CCIL, Indian Clearing Corporation, India International Clearing Corporation, NSE Clearing, NSE IFSC Clearing, MCX Clearing.