Non-bank arms mooted to tackle RBI-ESMA rift

Amid the standoff between the Reserve Bank of India (RBI) and the European Securities and Markets Authority (ESMA), the former is open to the idea of European banks carrying out government securities trading and custody businesses through locally incorporated non-bank arms of these MNC institutions.

If the proposal gains ground, it would come across as a strong signal from Indian authorities on regulatory jurisdiction and control over key market infrastructure.