Question:-Recently SEBI signed an agreement with the European Securities and Markets Authority for information exchange on …
( a) Central counterparties
( b) foreign institutional investors
(c) FDI
(d) None of the above
Answer:- ( a)
Related facts:-
- On July 20, 2017 , Markets regulator Sebi signed an agreement with the European Securities and Markets Authority (ESMA) for exchange of information concerning Central Counterparties (CCPs).
- The MoU establishes cooperation arrangements, including the exchange of information regarding Central Counterparties (CCPs) which are established and authorised or recognised in India by SEBI, and which have applied for EU recognition under EMIR.
- EMIR provides for signing of a cooperation arrangement 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
- The MoU will facilitate recognition of third country CCPs by ESMA under EMIR.
- Notably, Central counterparties are entities that help facilitate clearing and settlement activities.