“It’s also important for regulators on both sides to understand and trust the strength and credibility of Indian regulations. Das spoke in post-policy interactions with media.

European Securities and Markets Authority announced that it would not recognize six Indian third country counterparties (TCCPs) in October under the European Market Infrastructure Regulations (EMIR) regime. These were the Clearing Corporation of India (CCIL), Indian Clearing Corporation Ltd. ICCL, NSE Clearing Ltd. NSCCL, Multi Commodity Exchange Clearing Clearing Clearing (MCXCCL), Multi Commodity Exchange Clearing Clearing Clearing Corporation Ltd. NICCL), Clearing Corporation of India Ltd (IICC) Clearing Corporation (NSE IFSC Clearing Corporation Clearing Corporation (NICCL) Clearing Corporation Ltd. The withdrawal decision will take effect May 1, 2023, according to the Bank of India. Similar decision was made by the Bank of England.

CCPs are the intermediary between two transactions — clearing and settlement — and also guarantee the terms and conditions of trades.

Das stated further that India’s market infrastructure is far more robust today than it was in the past 10-30 year.

“We comply fully with the Committee on Payments and Market Infrastructures guidelines (CPMI), under the aegis Basel framework and all international standards,” he said.

CPMI is an international standard setting body that promotes, monitors or makes recommendations to improve the safety and effectiveness of payment, clearing, settlement, and related arrangements. It supports financial stability.

It is also a forum for cooperation between central banks in related oversight, operational and policy matters, as well as the provision of services.

T Rabi Sankar (RBI Deputy Governor) stated that the core difference between the RBI regulators and European regulators is the fact that an Indian entity, which is not a member of the European Union (EU), and is based entirely in India, is subject to EU regulation.

“Like Japan they have an agreement with us, they simply went ahead. They have done an assessment. Similar things could be done. Sankar said that they are working towards it.

Japan and the Financial Services Agency, Japan exchanged letters on cooperation in the field CCPs.

Sankar stated that the talks with ESMA continue and hoped to reach some type of understanding.

“There is no disturbance at the moment. “If there is any disturbance, we will have everything ready,” he said.

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