Sebi inks pact with ESMA for info exchange on CCPs

Markets regulator Sebi today said it has entered into a pact with the European Securities and Markets Authority (ESMA) for exchange of information concerning Central Counterparties (CCPs).
Central counterparties are entities that help facilitate clearing and settlement activities.
The Memorandum of Understanding (MoU) has been signed between the Securities and Exchange Board of India (Sebi) and ESMA under the European Markets Infrastructure Regulation (EMIR).
"The MoU establishes cooperation arrangements, including the exchange of information regarding Central Counterparties (CCPs) which are established and authorised or recognised in India by Sebi, and which have applied for EU recognition under EMIR," the regulator said in a release today.

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.