EU may ban six Indian clearing houses

During an evaluation, ESMA, the EU’s financial markets supervisor and regulator, said earlier this week that six of India’s central counterparties (CCPs) will be de-recognized in compliance with the European Market Infrastructure Regulation.

Unless the Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) can negotiate new terms with the European Securities and Markets Authority (ESMA) on oversight of counter-party institutions, European banks operating in India may soon find it difficult to operate profitably.

During an evaluation, ESMA, the EU’s financial markets supervisor and regulator, said earlier this week that six of India’s central counterparties (CCPs) will be de-recognized in compliance with the European Market Infrastructure Regulation. The decisions’ implementation has been postponed until April 30, 2023, nevertheless, to lessen their negative effects on EU market players. If the talks fall through, European banks could need to maintain

The Clearing Corporation of India (CCIL), which is under the control of the RBI, the Indian Clearing Corporation (ICCL), the Multi Commodity Exchange Clearing (MCXCCL), and the NSE Clearing (NSCCL), which is under the control of Sebi, are among the six institutions on ESMA’s list. The International Financial Services Centre Authority and the India International Clearing Corporation (IICC) and the NSE IFSC Clearing Corporation (NICCL), which are under the control of (IFSCA).

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