RBI-ESMA Standoff

European Union's financial market regulator, European Securities and Markets Authority (ESMA) has proposed derecognising 6 Indian counterparty clearing corporations (CCPs) from April 30, 2023.
ESMA enters into agreement with regulators of other national jurisdictions and mandates conditions such as audits and counterparties in other countries.
Regulators in India have not agreed to external audits and supervise by ESMA and want ESMA to have faith in Indian regulators.
Six central counterparties to be derecognised by ESMA are:
Clearing Corporation of India.
Indian Clearing Corporation Limited
NSE Clearing Limited.
India International Clearing Corporation Limited
Multi-Commodity Exchange Clearing Corporation Limited
NSE IFSC Clearing Corporation.

Central Counterparties (CCPs)

Counterparty Clearing house or CCP collects money from both the trading parties including the buyers and sellers which ensures that both parties will follow through the said agreement.
CCPs perform two main functions as the intermediary in a transaction - Clearing and Settlement – Guarantee the terms of trade.
CCPs is authorised by RBI to operate in India under Payment & Settlement Act, 2007.

Clearing Corporation of India was established in 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative Markets.
Clearing Corporation of India acts as central counterparty for all trades in G-Sec markets, Forex markets,
Promoters: Commercial banks (SBI, IDBI, ICICI Bank, Bank of Baroda and HDFC Bank) have 66%, Financial Institutions etc. holding others.