The European Securities and Markets Authority (ESMA) has proposed less-stringent rules on inspecting and penalising Indian financial market institutions such as the Clearing Corporation of India (CCI) to enable unhindered trading by European banks, said two people familiar with the matter.
Under the new suggested rules sent to the Reserve Bank of India (RBI), ESMA will keep the former in the loop. Action against central counterparty companies won’t be taken without the knowledge of the Indian regulator, according to the people cited above. ESMA has said it would be difficult to amend its rules to meet Indian demands that it has no right to inspect and penalise companies wherever European banks are trading, they said.
Source:
Economic Times
