ESMA in 'active' talks with RBI to resolve Clearing Corporation impasse

After the global financial crisis of 2008, the European Union in 2012 had adopted new market infrastructure regulations in order to strengthen and safeguard systems

The European Securities and Markets Authority (Esma) is in “active” discussions with the Indian regulators for a possible pact that could end the deadlock over European banks’ participation in the domestic bond and derivatives markets.

“Esma is currently actively engaged in negotiations with the Indian authorities regarding a potential EMIR (European Market Infrastructure Regulation)-compliant MoU,” a spokesperson for the European Union's securities watchdog told Business Standard over email.

The spokesperson, however, declined to comment on the contours of negotiations, especially regarding inspection, audit, and potentially penalising domestic central counterparties, on which the RBI has reservations. “…any possible MoU will need to be