Impasse to end as ESMA, RBI renew pact

The European Securities and Markets Authority (ESMA), the European Union’s financial markets regulator, on Tuesday said it has entered into an agreement with the Reserve Bank of India (RBI) to exchange information for the recognition of Indian central counterparties (CCPs), more than three years after a standoff began over domestic clearing houses.

- Shayan Ghosh&

“This agreement marks a significant step towards restoring access for EU clearing members to Indian central counterparties and follows two years of sustained engagement between ESMA and RBI,” ESMA said in a statement.

RBI noted that the new pact replaces an earlier MoU.

The announcement comes the same day India and the European Union (EU) signed a free trade agreement, expected to double EU exports to India.