Indian and European regulators are engaged in intense discussions to resolve oversight issues regarding local clearing houses, with banks asked to make alternate arrangements with an end-October deadline approaching, according to people familiar with the matter.
Financial regulators of Germany and France have asked banks under their jurisdiction to make provisions with Indian custodians if a resolution is not reached by the date, said the people, who requested anonymity discussing private matters.
The Reserve Bank of India denied European Securities and Markets Authority’s request to co-supervise Indian transactions, citing concerns over “extra-territorial reach”. In response, ESMA withdrew recognition from six Indian central counterparties, effective May 2023.
Source: Economic Times