RBI and European Securities and Markets Authority (ESMA) has signed a MoU

¨     RBI and European Securities and Markets Authority (ESMA) has signed a MoU.

¨     The MoU concerns cooperation and exchange of information related to Central Counterparties regulated and supervised by RBI.
¨     The MoU creates a framework for ESMA to rely on RBI’s regulatory and supervisory activities when safeguarding the European Union’s financial stability.
¨     The MoU highlights the importance of cross-border regulatory cooperation to support smooth functioning of international clearing activities.
¨     The MoU allows the Clearing Corporation of India Limited to reapply for recognition under the European Market Infrastructure Regulation.
¨     Clearing Corporation of India Limited is a Central Counterparty established in India. It is supervised by RBI.
¨     The MoU follows two years of engagement between ESMA and RBI.
¨     ESMA is continuing discussions with the SEBI and the International Financial Services Centres Authority for similar cooperation arrangements.