The globalisation work of the corporate and financial sector of India just received a boost in the form of a Memorandum of Understanding (MoU), signed between the European Securities and Markets Authority (ESMA) and the Securities and Exchange Board of India (SEBI).
The MoU was signed under the European Markets Infrastructure Regulation (EMIR), as per reports. It comes into effect, retrospectively, from June 21, 2017.
What the MoU intends to do is establish cooperation arrangements, including the exchange of information, regarding Central Counterparties (CCPs) which are established and authorised or recognised in India, and which have applied for EU recognition under EMIR.
This exchange of information will enable financial information exchange that will help corporate bodies, including PSUs, establish their credibility in the European markets. The overall legal and supervisory frameworks will also be enabled through this MoU.
EMIR provides for cooperation arrangements 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.