ESMA RBI MoU Opens EU Access To Indian CCPs

The new cooperation framework between European and Indian authorities, centered on the esma rbi memorandum, is set to reshape how clearing access and oversight operate across borders.

ESMA and RBI sign key Memorandum of Understanding

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI). The MoU is designed to facilitate cooperation and the exchange of information to support the recognition of central counterparties (CCPs) established in India and supervised by RBI.

Moreover, the agreement lays the foundation for closer oversight coordination between EU authorities and Indian regulators. It directly addresses the regulatory requirements needed so that Indian CCPs can be recognised for activity involving EU clearing members and cross-border risk management.

This MoU marks a significant step towards restoring access for EU clearing members to Indian central counterparties. It follows two years of sustained engagement between ESMA and RBI, culminating in this formal cooperation arrangement dated 27/01/2026. That said, further technical and procedural steps will still be needed before full clearing links are operational again.

The arrangement reflects ESMA’s strong commitment to international supervisory cooperation and mutual support. However, it is also intended to advance safe, resilient and open financial markets by ensuring that cross-border clearing is backed by robust information sharing and coordinated supervision.

Role of the MoU under EMIR

The MoU is a key requirement under Article 25 of the European Market Infrastructure Regulation (EMIR) for the recognition by ESMA of third-country CCPs. Under this regulatory framework, ESMA may only recognise a non-EU central counterparty where effective cooperation arrangements with the relevant home authority are in place.

In practical terms, this cooperation agreement enables the Clearing Corporation of India Ltd (CCIL), a CCP established in India and supervised by RBI, to re-apply for recognition under EMIR. The esma rbi framework therefore opens the door for a fresh CCIL recognition process, subject to ESMA’s usual risk and compliance assessments.

Moreover, once a new ccil recognition application is successfully processed, EU clearing members could again clear specific Indian products through CCIL. This would support cross border clearing cooperation in line with EU standards on risk controls and transparency.

However, recognition is not automatic. ESMA will still assess whether CCIL and other relevant entities meet all applicable conditions under the emir recognition process, including prudential, operational and governance requirements, before taking any final decision.

Broader cooperation with Indian market regulators

Beyond the agreement with RBI, ESMA is also continuing discussions with the Securities and Exchange Board of India (SEBI) and the International Financial Services Centres Authority (IFSCA). These talks aim to conclude similar cooperation arrangements that can underpin central counterparty recognition and other forms of supervisory collaboration.

Furthermore, these ongoing negotiations are expected to support broader indian ccp access for EU market participants, subject to future recognition decisions. They also build on the rbi esma memorandum by extending the cooperative framework to other key Indian financial authorities.

That said, each arrangement with SEBI and IFSCA will need to address specific regulatory responsibilities and market segments. ESMA has indicated that it is working toward a coherent approach that maintains high standards while enabling cross-border activity.

In parallel, ESMA’s outreach to Indian regulators includes technical dialogue on risk management, default procedures and data reporting. However, any future sebi ifsca cooperation will remain anchored in the EU’s regulatory objectives of financial stability, investor protection and orderly markets.

Overall, this MoU between ESMA and RBI is a pivotal milestone for cross-border clearing with India. It restores a formal pathway for recognising Indian CCPs under EU rules and lays the groundwork for deeper cooperation with SEBI and IFSCA, thereby strengthening the resilience and openness of international financial markets.