RBI in advanced talks with European Securities and Markets Authority
Reserve Bank of India is in advanced talks with the European Securities and Markets Authority (ESMA) on the tussle surrounding oversight of the Clearing Corporation of India (CCIL) even as discussions with other overseas authorities on the issue have progressed far more smoothly.
«Conversations regarding MoUs (Memorandum of Understanding) are going on regularly with the ESMA. The others (other global regulators) have taken a much more relaxed stance.
Efforts are on to find a solution,» a senior central bank official told ET on condition of anonymity.
In an interview to news organisation Informist Media earlier this week, department of economic affairs secretary Ajay Seth said that the logjam over the derecognition of six Indian clearing houses, including the CCIL, is expected to be resolved soon.
In October 2022, the ESMA had announced the de-recognition of six Indian clearing houses, including the CCIL, which houses the platform for trading in government bonds and overnight indexed swaps (OIS).
The decision, which was followed by a similar one by the Bank of England, was taken following the RBI's refusal to permit rights of inspection and audit over the CCIL by overseas regulators.
In June, the UK Treasury accorded equivalence to central counterparties authorised by the RBI, the first such decision after Brexit and one which marked a significant step in resolving the stalemate.
In November 2022, the RBI and the Financial Services Agency (FSA), Japan, exchanged letters of cooperation in the field of Central Counter Parties (CCPs) with the objective of improving mutual cooperation. RBI Governor Shaktikanta Das last year called upon overseas bodies to respect the resilience of Indian regulations.
