Trust credibility of Indian norms: RBI to foreign regulators

Amid European financial market regulators’ decision to de-recognise domestic clearing corporations, the Reserve Bank of India governor Shaktikanta Das said that the foreign regulators should trust the credibility of Indian regulations.

“It is also necessary for regulators on the other side to appreciate and trust the credibility and strength of Indian regulations. That is what we are trying to impress upon them,” Das said in the post-policy interaction with the media.

In October this year, European Securities and Markets Authority (ESMA) announced that it will withdraw the recognition of six Indian third country central counterparties (TC-CCPs) — the Clearing Corporation of India (CCIL), Indian Clearing Corporation Ltd (ICCL), NSE Clearing Ltd (NSCCL), Multi Commodity Exchange Clearing (MCXCCL), India International Clearing Corporation (IFSC) Ltd (IICC) and NSE IFSC Clearing Corporation Ltd (NICCL) — under the European Market Infrastructure Regulation (EMIR) regime. It, however, said the withdrawal decision will come into effect from May 1, 2023. The Bank of England also took a similar decision.