India’s securities regulator and the Bank of England signed an agreement to share information about clearing corporations recognized in India, giving the U.K. central bank a framework to rely on Indian supervision while protecting financial stability.
The Securities and Exchange Board of India (SEBI) said the memorandum, announced Oct. 28, covers cooperation and information exchange on clearing corporations it recognizes and central counterparties. The arrangement is subject to the authorities’ respective laws and regulations. It allows the Bank of England to rely on SEBI’s regulatory and supervisory activities while safeguarding U.K. financial stability. SEBI did not identify the clearing corporations covered or detail how the information exchange would work.
“The MoU demonstrates the importance of cross-border cooperation to facilitate international clearing activities,” SEBI said.
For certain financial contracts, a central counterparty becomes the direct counterparty to both sides of a trade. The Bank of England’s register lists NSE Clearing as a recognized non-U.K. central counterparty in India, with a recognition date of Oct. 19, 2026, and identifies SEBI as its home authority. The register does not say the recognition resulted from the new agreement.
The Bank of England and the Reserve Bank of India signed a separate memorandum on Dec. 1, 2023, concerning the Clearing Corporation of India Ltd. In its announcement that year, the Bank of England said the agreement provided a basis to review the company’s application for U.K. recognition.
