Extraterritorial reach of regulators weakens domestic stability: RBI

Discussions with foreign regulators positive

Amid tussle over supervisory powers with European regulators for domestic central counterparties, the Reserve Bank of India (RBI) said such extraterritorial reach could undermine domestic financial stability.
 

In the bi-annual financial stability report, the central bank said that to prevent a possible logjam there has been ‘positive dialogue’ with relevant stakeholders, including the European Securities and Markets Authority (ESMA) and the European Commission.

The report said the discussions still continue, so as to arrive at a mutually acceptable arrangement, which duly recognises the territorial independence of the host regulator.
 

“In the undesirable event of a possible market disruption, however, remedial measures