6 Sep 2023 , 02:18 PM
While negotiations with other foreign agencies on the matter have gone far more easily, the Reserve Bank of India is currently in advanced talks with the European Securities and Markets Authority (ESMA) over the dispute surrounding oversight of the Clearing Corporation of India (CCIL).
‘Discussions with the ESMA about MoUs (Memorandum of Understanding) are ongoing. Other worldwide regulators have adopted a considerably more liberal approach. News reports stated that efforts were being made to find a solution.
Department of Economic Affairs Secretary Ajay Seth stated that the impasse over the derecognition of six Indian clearing houses, including the CCIL, in an interview with news outlet Informist Media earlier this week.
Six Indian clearing houses, including the CCIL, which contains the platform for trading in government bonds and overnight indexed swaps (OIS), were de-recognized by the ESMA in October 2022.
The RBI’s refusal to grant foreign authorities the power to inspect and audit the CCIL led to the decision, which was followed by a similar one by the Bank of England.
The UK Treasury granted equivalence to central counterparties authorised by the RBI in June, the first such decision following Brexit and a crucial step towards ending the impasse.
In order to strengthen their mutual cooperation, the RBI and the Financial Services Agency (FSA), Japan, exchanged letters of cooperation in the area of central counterparties (CCPs) in November 2022. Last year, Shaktikanta Das, governor of the RBI, urged international organisations to respect the robustness of Indian legislation.
For feedback and suggestions, write to us at editorial@iifl.comWhile negotiations with other foreign agencies on the matter have gone far more easily, the Reserve Bank of India is currently in advanced talks with the European Securities and Markets Authority (ESMA) over the dispute surrounding oversight of the Clearing Corporation of India (CCIL).
‘Discussions with the ESMA about MoUs (Memorandum of Understanding) are ongoing. Other worldwide regulators have adopted a considerably more liberal approach. News reports stated that efforts were being made to find a solution.
Department of Economic Affairs Secretary Ajay Seth stated that the impasse over the derecognition of six Indian clearing houses, including the CCIL, in an interview with news outlet Informist Media earlier this week.
Six Indian clearing houses, including the CCIL, which contains the platform for trading in government bonds and overnight indexed swaps (OIS), were de-recognized by the ESMA in October 2022.
The RBI’s refusal to grant foreign authorities the power to inspect and audit the CCIL led to the decision, which was followed by a similar one by the Bank of England.
The UK Treasury granted equivalence to central counterparties authorized by the RBI in June, the first such decision following Brexit and a crucial step towards ending the impasse.
In order to strengthen their mutual cooperation, the RBI and the Financial Services Agency (FSA), Japan, exchanged letters of cooperation in the area of central counterparties (CCPs) in November 2022. Last year, Shaktikanta Das, governor of the RBI, urged international organizations to respect the robustness of Indian legislation.
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 Securities 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.