New Delhi: The Reserve Bank of India (RBI) has signed a Memorandum of Understanding (MoU) with the European Securities and Markets Authority, following approval from the Union Cabinet, during the official visit of the President of the European Council and the President of the European Commission to India on January 27, 2026.
The MoU with the European Securities and Markets Authority is aimed at enabling the formal recognition of the Clearing Corporation of India Ltd. (CCIL) and other RBI-regulated Central Counterparties (CCPs) by ESMA, strengthening cross-border regulatory cooperation between India and the European Union.
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European Securities and Markets Authority Recognition Framework for Indian CCPs
Under the MoU, the RBI and the European Securities and Markets Authority have expressed their intent to cooperate in regulatory and supervisory practices concerning covered Central Counterparties, to the extent permitted under applicable laws and regulations.
The agreement provides a framework for consultation, cooperation, and exchange of information related to the oversight of CCPs and the monitoring of their compliance with ESMA’s recognition conditions.
As part of the arrangement, ESMA will, where appropriate, rely on the regulatory framework and supervisory practices of the RBI, while acknowledging that the RBI remains fully accountable in India for ensuring the resilience and stability of the covered CCPs under its supervision.
The MoU serves as a statement of intent between the two authorities and does not create legally binding obligations, confer any rights, or override domestic laws. It comes into effect from the date of signing and will remain operative for an unlimited period.
