Feb 17 (Reuters) – France’s AMF market regulator has given its banks and members eighteen months to search out new methods to settle India-based trades amid a stand-off between Indian monetary regulators and the European Securities Market Authority (ESMA), it stated in a press release on Friday.
The ESMA has withdrawn recognition of six Indian clearing counterparties efficient from April, that means European banks must settle their India-based trades by means of banks primarily based in different jurisdictions.
The French regulator, asking banks to submit transition plans, stated that credit score establishments have shared issues that the orderly switch of their Indian commerce positions is a prolonged course of.
The plans ought to element the steps they intend to implement to switch positions to a “duly authorised clearing member” no later than Oct. 31, 2024, AMF stated.
Reporting by Jayshree P Upadhyay; Modifying by Kirsten Donovan
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