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Esma to penalise but let European Union banks deal with India CCPs

Though April 30 deadline stands, EU regulator gives a breather to European banks

European Securities and Markets Authority, Esma
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European Securities and Markets Authority, Esma

Asit Ranjan Mishra New Delhi
The European Securities and Markets Authority (Esma), financial markets regulator of the European Union, will allow European banks to continue doing business with their Indian central counterparties (CCPs), even after its April 30 deadline, by imposing a “penal capital charge”.
 
Replying to e-mail queries from Business Standard, an Esma spokesperson said: “The decisions will apply from April 30, 2023. In the absence of recognition by Esma, there will be penal capital charges for dealing with non-recognised (Indian) CCPs.” The Esma spokesperson didn’t clarify the nature and extent of the capital that the European financial institutions need to set aside to

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First Published: Mar 19 2023 | 11:07 PM IST

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