The Reserve Bank of India (RBI) has signed a Memorandum of Understanding (MoU) with the European Securities and Markets Authority (ESMA) during the recent visit of the President of the European Council and the President of the European Commission to India.

The Ministry of Finance stated that the primary objective of the MoU is to enable formal recognition of the Clearing Corporation of India Limited (CCIL) and other RBI-regulated Central Counterparties (CCPs) by ESMA. The MoU is effective from the date of signing by the Authorities and will remain operative for an unlimited period.

Further, the Ministry said that RBI and ESMA will consult, cooperate, and exchange information regarding the covered CCPs and monitor their compliance with the recognition conditions.