ESMA Signs MoU With SEBI to Restore Indian CCP Access for EU Clearing Members

The European Securities and Markets Authority (ESMA) signed a Memorandum of Understanding with India’s Securities and Exchange Board (SEBI) on September 4, 2026, clearing a key hurdle for Indian central counterparties to regain access to EU clearing members.

The agreement covers cooperation and information exchange for CCPs established in India and supervised by SEBI. It replaces a 2017 MoU and follows more than two years of engagement after ESMA withdrew recognition for several SEBI-supervised CCPs — including Indian Clearing Corporation, NSE Clearing, and Multi Commodity Exchange Clearing Corporation — in April 2023.

Why it matters

Under Article 25 of the European Market Infrastructure Regulation (EMIR), a cooperation arrangement with the home regulator is a mandatory prerequisite for third-country CCP recognition. Without it, EU-based firms cannot clear through those venues. The new MoU removes that blocker and allows affected Indian CCPs to re-apply immediately.

For traders and brokers with exposure to Indian equities, commodities, or derivatives, restored CCP recognition means direct clearing access could return in the coming months — reducing the workarounds and cost that arose after the 2023 withdrawal.

What to watch next

ESMA is continuing discussions with the International Financial Services Centres Authority (IFSCA) for a similar arrangement. A separate MoU with the Reserve Bank of India was signed in January 2026 and already led to the Clearing Corporation of India regaining Tier 1 recognition in June 2026. Expect the SEBI-supervised CCPs to file recognition applications shortly.