Esma pact may open EU mkts for GIFT City

After RBI, EU regulator will also ink agreements with markets regulator Sebi as well as the IFSCA

- KHUSHBOO TIWARI

Cooperation agreements between the European Securities and Markets Authority (Esma) and the International Financial Services Centres Authority (IFSCA), the unified regulator at GIFT City in Gandhinagar, are expected to provide entities based in the financial hub access to a wider European investor base.

Following a memorandum of understanding (MoU) with the Reserve Bank of India (RBI) for information-sharing and recognition of central counterparties established in India, Esma is now in discussions with other Indian financial regulators, including the Securities and Exchange Board of India (Sebi) and IFSCA, for similar cooperation arrangements.

According to sources, the agreement with Sebi is close to being finalised and will primarily focus on information-sharing. Meanwhile, discussions on cooperation agreements with IFSCA are in the final stages, and are being held in consultation with the government.

Sources said that an agreement with IFSCA could allow industry participants registered in GIFT City to access jurisdictions under Esma’s regulatory ambit.