 "European Securities and Markets Authority, Esma")
The European Securities and Markets Authority (Esma), financial markets regulator of the European Union, will allow European banks to continue doing business with their Indian central counterparties (CCPs), even after its April 30 deadline, by imposing a “penal capital charge”.
Replying to e-mail queries from Business Standard, an Esma spokesperson said: “The decisions will apply from April 30, 2023. In the absence of recognition by Esma, there will be penal capital charges for dealing with non-recognised (Indian) CCPs.” The Esma spokesperson didn’t clarify the nature and extent of the capital that the European financial institutions need to set aside to deal with their Indian CCPs.
On February 17, the financial regulators of Germany (BaFin) and France (AMF) issued separate statements
