The agreement establishes a framework for regulatory cooperation and information sharing on SEBI-recognised clearing corporations, supporting cross-border financial market oversight.
The Securities and Exchange Board of India (SEBI) has signed a memorandum of understanding (MoU) with the Bank of England to facilitate regulatory cooperation and information exchange concerning clearing corporations recognised by the Indian capital markets regulator.
Announced on October 28, 2026, the agreement establishes a framework for cooperation between the two authorities regarding central counterparties, in accordance with their respective laws and regulatory requirements.
Under the MoU, the Bank of England can rely on SEBI’s regulatory and supervisory activities while safeguarding the financial stability of the United Kingdom. The arrangement provides a basis for the two regulators to coordinate on matters related to clearing corporations.
Clearing corporations play an important role in financial markets by helping manage counterparty risk and facilitating the settlement of transactions between buyers and sellers. Their effective oversight supports the orderly functioning of markets and helps maintain confidence among participants.
As financial markets become increasingly interconnected across countries, regulatory cooperation can help authorities exchange relevant information and address supervisory issues involving cross-border clearing activities.
The agreement outlines a framework for SEBI and the Bank of England to work together within their respective legal and regulatory jurisdictions. It does not replace either regulator’s existing responsibilities.
The MoU marks a step towards closer cooperation between Indian and UK financial authorities, with a focus on clearing infrastructure, information sharing and financial stability.
