EUROPEAN SECURITIES AND MARKETS AUTHORITY (ESMA)

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Context: 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. These comments come in the wake of the European Securities and Markets Authority (ESMA) and the UK derecognising Indian clearing houses.

Details:

About:

• The European Securities and Markets Authority (ESMA) is an independent European Union (EU) Authority that contributes to safeguarding the stability of the EU's financial system by enhancing the protection of investors and promoting stable and orderly financial markets.
• ESMA achieves its objectives by:
• assessing risks to investors, markets and financial stability; 
• completing a single rulebook for EU financial markets; 
• promoting supervisory convergence; and
• directly supervising credit rating agencies, trade repositories and securitisation repositories.
• Whilst ESMA is an independent Authority, it is accountable to the European Institutions including the European Parliament, where it appears before the Economic and Monetary Affairs Committee (ECON) at their request for formal hearings, the Council of the European Union and European Commission.
• The Authority reports to the institutions on its activities regularly at meetings and also through its Annual Report.
• One mission: to enhance investor protection and promote stable and orderly financial markets
• Three Objectives: Investor Protection, Orderly Markets and Financial Stability
• ESMA was founded as a direct result of the recommendations of the 2009 de Larosière reportwhich called for the establishment of a European System of Financial Supervision (ESFS) as a decentralised network.
• It began operations, under its Founding Regulationon 1 January 2011, replacing the Committee of European Securities Regulators (CESR) which was a network of NCAs which promoted consistent supervision across the EU and provided advice to the European Commission.
• ESMA achieves its mission and objectives through four activities:

1. Assessing risks to investors, markets and financial stability;
2. Completing a single rulebook for EU financial markets;
3. Promoting supervisory convergence; and
4. Directly supervising specific financial entities.

https://indianexpress.com/article/business/market/esma-row-rbi-governor-shaktikanta-das-says-european-regulators-need-to-trust-indias-credibility-strength-8311215/