RBI working on alternate arrangements for banks hit by EU oversight rule

The RBI is continuously engaged with ESMA and other regulators to arrive at a mutually acceptable arrangement, which recognizes the territorial independence of the host regulator, said central bank

The Reserve Bank of India is working on alternate arrangements for banks whose local operations will get hit if Europe’s markets regulator withdraws recognition to Indian central counterparties.
 

The RBI and European Securities and Markets Authority are clashing over ESMA’s demand to join the RBI in overseeing Indian transactions. 

The move would give the foreign regulator “extra-territorial reach,” the RBI said in its half yearly Financial Stability Report published Thursday. “Such regulations, if implemented by all jurisdictions, can create a parallel maze of laws with overlapping requirements or restrictions and show a lack of trust in the capabilities and quality of