SEBI signs MoU for mutual co-operation with European Regulators
Published: Jul 21, 2017
By TIOLCORPLAW News Service
MUMBAI, JULY 21, 2017: THE Securities and Exchange Board of India (SEBI) has entered into a Memorandum of Understanding (MoU) with the European Securities and Markets Authority (ESMA) under the European Markets Infrastructure Regulation (EMIR).
The MoU establishes cooperation arrangements as a precondition for ESMA to recognize Central Counter Parties (CCPs) established in India and supervised by SEBI, to provide clearing services to clearing members or trading venues established in the European Union (EU) and to provide ESMA with adequate tools to monitor the on-going compliance by the covered CCPs with Recognition Conditions.
EMIR provides for signing of a cooperation arrangement between ESMA and the relevant non-EU authorities, whose legal and supervisory framework for CCPs have been deemed equivalent to EMIR by the European Commission. Signing of MoU is one of the conditions for recognition of third country CCPs by ESMA under EMIR.