RBI and ESMA Sign MoU to Enable EU Recognition of Indian
Clearing Corporations
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Reserve Bank of India (RBI) signs a
Memorandum of Understanding with the European Securities and Markets Authority
(ESMA)
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MoU aims to enable formal recognition of
the Clearing Corporation of India Ltd. (CCIL) and other RBI-regulated Central
Counterparties by ESMA
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RBI and ESMA to consult, cooperate and
exchange information with regard to the covered Central Counterparties (CCPs)
and monitoring of the compliance by the covered CCPs with the recognition
conditions
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With Union
Cabinet approval, the Reserve
Bank of India (RBI) signed a Memorandum of Understanding (MoU) with the European Securities and Markets
Authority (ESMA) on 27
January 2026, during the visit of the President of the European Council
and the President of the
European Commission to India.
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The primary objective of the MoU is to facilitate formal recognition by ESMA of the
Clearing Corporation of India Ltd. (CCIL) and other RBI-regulated Central Counterparties
(CCPs).
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The MoU represents a statement
of intent between RBI and ESMA to enhance regulatory and supervisory cooperation
concerning covered CCPs, subject to applicable laws and regulations.
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Under the arrangement, RBI and ESMA will consult, cooperate and exchange
information on supervision, compliance and recognition
conditions of the covered CCPs.
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ESMA will, as appropriate, rely on RBI’s regulatory framework and supervisory
oversight, while acknowledging that RBI remains fully accountable in India
for the resilience and stability of the covered CCPs.
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The MoU supports cross-border
financial market integration and is expected to enhance confidence in Indian clearing
infrastructure among European market participants.
·
The MoU does
not create legally binding obligations, confer rights, or
override domestic laws
of either jurisdiction.
·
It comes into effect from
the date of signing and will remain operative for an unlimited period.
With
the approval of the Union Cabinet, Reserve Bank of India (RBI) signed a
Memorandum of Understanding with the European Securities and Markets Authority
(ESMA) during the Visit of President of the European Council and President of
the European Commission to India on 27.01.2026.
The
primary objective of the MoU is to enable formal recognition of the Clearing
Corporation of India Ltd. (CCIL) and other RBI-regulated Central Counterparties
by ESMA.
The
MoU is a statement of intent of RBI and ESMA, with respect to the covered
Central Counterparties (CCPs), and cooperation in regulatory and supervisory
practices to the extent permitted by applicable laws and regulations. RBI and
ESMA will consult, cooperate and exchange information with each other with
regard to the covered Central Counterparties (CCPs) and monitoring of the
compliance by the covered CCPs with the recognition conditions. In fulfilment
of its responsibilities and objectives, ESMA will rely as appropriate upon the
regulatory framework and supervision of the RBI, recognising that the RBI
remains accountable in India for the resilience of the Covered CCPs under its
supervision.
The MoU does not create any legally
binding obligations, confer any rights or supersede any domestic laws. The MoU
is effective from the date of signing by the Authorities and will remain
operative for an unlimited period of time.