By Jayshree P Upadhyay
(Reuters) - France's AMF market regulator has given its banks and members eighteen months to find new ways to settle India-based trades amid a stand-off between Indian financial regulators and the European Securities Market Authority (ESMA), it said in a statement on Friday.
The ESMA has withdrawn recognition of six Indian clearing counterparties effective from April, meaning European banks will have to settle their India-based trades through banks based in other jurisdictions.
The French regulator, asking banks to submit transition plans, said that credit institutions have shared concerns that the orderly transfer of their Indian trade positions is a lengthy process.
The plans should detail the steps they intend to implement to transfer positions to a "duly authorised clearing member" no later than Oct. 31, 2024, AMF said.