Impasse persists as ESMA D-day looms

The European Securities and Markets Authority's (ESMA) deadline to derecognize six Indian clearing houses remains unresolved as European and Indian regulators are in a stalemate. ESMA withdrew recognition of the clearing houses after a prior agreement between the EU and India expired. ESMA has sought to revise the pact but Indian regulators have resisted granting supervisory powers to inspect Indian clearing corporations. Deutsche Bank, Societe Generale, and BNP Paribas are among the institutions that would be most affected by the fallout, as European banks conducting treasury operations and settling trades in India would be impacted.
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