29 Nov 2022 , 11:12 AM
Foreign banks said they would discuss an alternative to the clearing mechanism as the European Securities and Markets Authority’s decision to derecognise six Indian CCPs, including the Clearing Corp of India Ltd and Indian Clearing Corp, from April 30, 2023. This decision by European regulators, the European Securities and Markets Authority (ESMA) and the Bank of England (BoE) left only room for bilateral transactions between banks.
European banks with Indian arms are BNP Paribas, Credit Agricole, Credit Suisse, Deutsche Bank and Société Générale. These banks represent offshore regulators in dealing with matters that may seriously affect business operations.
The de-listing decision came after the RBI refused to allow foreign entities to audit and inspect CCIL. As per current RBI norms, certain eligible entities may open basic sub-ledger accounts with the central bank on behalf of their constituents for dealing in government securities. The six organizations de-recognized by ESMA are CCIL, Indian Clearing Corporation, NSE Clearing, Multi Commodity Exchange Clearing, IFSC and NSE IFSC Clearing Corporation.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.