ESMA and RBI Sign MoU to Enable Recognition of Indian Central Counterparties
- News Desk
- 5 hours ago
- 2 min read
The European Securities and Markets Authority (ESMA) and the Reserve Bank of India (RBI) have signed a Memorandum of Understanding to facilitate cooperation and information exchange for the recognition of central counterparties (CCPs) established in India and supervised by the RBI.
The MoU was executed during the January 27, 2026 visit of European leaders to India, following approval by the Union Cabinet prior to its formal execution.
Primary Objective and Scope
The MoU's principal objective is to enable formal recognition of the Clearing Corporation of India Limited (CCIL) and other RBI-regulated central counterparties under the European Market Infrastructure Regulation (EMIR).
ESMA, as the EU's financial markets regulator and supervisor, will facilitate this recognition process, thereby enabling Indian CCPs to effectively serve EU clearing members and enhance market access for European participants engaging with Indian clearing infrastructure.
Regulatory Cooperation Framework
Under this arrangement, the RBI and ESMA will engage in regular consultation and cooperation regarding regulatory and supervisory practices applicable to covered CCPs.
Both authorities have committed to exchanging relevant information concerning central counterparties subject to the MoU's scope. ESMA will monitor CCP compliance with the recognition conditions established under EMIR, while the RBI remains fully accountable for ensuring the resilience and soundness of the CCPs it supervises in India.
Legal Framework and Status
The MoU represents a statement of intent between both authorities and creates no legally binding obligations under domestic or international law.
The agreement does not confer rights, obligations, or supersede existing domestic laws governing either jurisdiction.
The MoU became effective upon signing and will remain operative indefinitely unless terminated by either party through written notice.
Broader Context
This agreement represents the culmination of two years of sustained engagement between Indian and European financial regulators.
ESMA is concurrently continuing discussions with India's Securities and Exchange Board (SEBI) and the International Financial Services Centres Authority (IFSCA) to strengthen regulatory cooperation.
The MoU demonstrates ESMA's commitment to fostering safe, resilient, and open financial markets between India and the European Union.
