Sebi, European Markets Authority partner for cooperation on central counterparties

Sebi and the European Securities and Markets Authority have signed a memorandum of understanding to strengthen cooperation and exchange of information relating to central counterparties regulated and supervised by the Indian market regulator. The new MoU replaces an earlier agreement between Sebi and ESMA that was signed in June 2017, according to a Sebi press release.

The agreement sets up a framework for cooperation between the two regulators on central counterparties, or CCPs, in line with their respective laws and regulations. It also allows ESMA to rely on Sebi’s regulatory and supervisory activities while safeguarding the European Union’s financial stability.


Central counterparties play a key role in market infrastructure by standing between buyers and sellers in financial market transactions and helping manage counterparty risk. Cooperation between regulators becomes important when clearing activity has a cross-border link or when overseas entities depend on market infrastructure supervised by another regulator.

Sebi said the MoU demonstrates the importance of cross-border cooperation in facilitating international clearing activities. The agreement was signed by Sebi Chairman Tuhin Kanta Pandey and ESMA Chair Verena Ross.

For Indian market infrastructure, such agreements help maintain engagement with overseas regulators and support confidence in the supervision of entities operating in India’s securities market ecosystem.

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