RBI and Europe patch things up for smoother trading
After two years of back-and-forth, the Reserve Bank of India (RBI) and the European Securities and Markets Authority (ESMA) have finally agreed on how to oversee India's central clearing agencies.
This new deal means both sides will share info and work together, setting the stage for Europe to officially recognize Indian clearing houses—something that could make trading way easier for European banks.
Why this matters
Without ESMA's recognition, European banks had been paying extra fees just to trade Indian bonds, which kept many out of the market.
Now, with this MoU in place, ESMA can rely on RBI's supervision instead of stepping in directly.
Plus, the Clearing Corporation of India can re-apply for recognition under European Market Infrastructure Regulation—potentially enhancing European access to India's financial markets.