Esma row: EU regulators need to trust India's credibility and strength: RBI Guv
India is different from what it was 20-30 years ago and the regulations here are robust, says Das
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Mumbai: India is much different today than what it was earlier and the developed world needs to trust the credibility and strength of local regulators, RBI Governor Shaktikanta Das said on Wednesday.
In comments that come in the wake of the European Securities and Markets Authority (ESMA) and the UK derecognising Indian clearing houses, Das said Indian market infrastructure complies with all the international standards. "I think, it is also necessary for regulators on the other side to appreciate the credibility, they must trust the credibility and strength of the Indian regulations. That is what we are trying to impress upon them," Das told reporters here.
India is different from what it was 10-20-30 years ago and the regulations here are robust, the governor added. It can be noted that recently, the ESMA announced that it will stop recognising six major clearing houses from April 1 next year, which was followed by a similar move from the Bank of England.
As per experts, such moves have the potential for disruptions as European lenders will be forced to set aside higher capital if they wish to continue dealing with non-recognised entities.
