ESMA deadlock: European regulator's interference unfortunate, says RBI DG

"Potential disruption to the forex markets can be serious"

The Reserve Bank of India’s (RBI’s) Deputy Governor T Rabi Sankar has termed the derecognition of Indian clearing houses by the UK and European regulators ‘unfortunate interference’, particularly when such Indian entities meet the global best standards.

Sankar, who is the deputy governor in charge of the financial markets, was speaking at a seminar organised by Financial Benchmarks India in Mumbai on Monday. The speech was uploaded on the RBI website on Wednesday.

“A probably unintended consequence of the post-global financial crisis (GFC) drive towards derisking over-the-counter derivatives markets has been the tendency of the developed economies to contain the