SEBI signs clearing MoU with the Bank of England; Bank's July list shows NSE Clearing's UK run-off ending on 30 October

The Securities and Exchange Board of India (SEBI) and the Bank of England have signed a memorandum of understanding (MoU) on cooperation and the exchange of information about SEBI-recognised clearing corporations, SEBI said on 28 October (PR No. 66/2026).

According to SEBI, the MoU “establishes a framework for BoE to place reliance on SEBI’s regulatory and supervisory activities while safeguarding the UK’s financial stability”. SEBI said it “demonstrates the importance of cross-border cooperation to facilitate international clearing activities”.

SEBI’s one-page release does not name the clearing corporations covered, the signatories or the date of signature. It does not mention NSE Clearing, UK recognition or the run-off regime, and it does not link the MoU to any UK date. The Bank of England had published no statement on the MoU on its news page or news RSS feed as of 06:45 GMT on 29 October.

The run-off date

Separately, the Bank’s own list of CCPs in the Temporary Recognition Regime and the run-off regime includes a date shortly after SEBI’s announcement. The version on the Bank’s website on 29 October is marked “Last update: 8 July 2026”, although the Bank’s transitional regimes page that links to it says it was last updated on 13 October 2026. As last updated on 8 July, the list shows:

CCP	Entered run-off	Date of exit	Initial recognition application
NSE Clearing Limited (NCL)	30 April 2023	30 October 2026	30 June 2022
India International Clearing Corporation (IFSC) Limited	30 April 2023	30 October 2026	31 December 2020
NSE IFSC Clearing Corporation Limited	30 April 2023	30 October 2026	31 December 2020
Indian Clearing Corporation Limited (ICCL)	1 July 2022	1 July 2023	N/A

NSE Clearing is supervised by SEBI, according to a 2022 ESMA release. The same release lists the two IFSC clearing houses as supervised by the International Financial Services Centres Authority (IFSCA), not SEBI, so a SEBI MoU would not on its face cover them.

The Bank explains that the run-off regime gives certain non-UK CCPs “time-limited recognition” so that UK firms have time “to close out relevant contracts and business with a non-UK CCP in an orderly manner”. The list says a CCP that enters run-off from the Temporary Recognition Regime is “taken to be recognised for a period of up to three and a half years”, and that CCPs in run-off “can apply for recognition under the standard process” if they want to keep providing clearing services in the UK after that.

The precedent

The Bank has followed this route with an Indian CCP before. When it signed an MoU with the Reserve Bank of India in December 2023, the Bank said the agreement “satisfies the requirement under Article 25(7) of the UK European Market Infrastructure Regulation which will allow the BoE to assess the Clearing Corporation of India Ltd’s application for UK recognition”. The Clearing Corporation of India (CCIL) said on 18 December 2023 that it had been recognised as a Tier 1 non-UK CCP “to offer services to UK clearing members and trading venues”, effective 15 December 2023.

The wording of SEBI’s release closely follows the Bank’s 2023 statement on the RBI MoU, but it does not include that statement’s sentence on Article 25(7) or any reference to a recognition application. Neither SEBI nor the Bank has said whether the new MoU is the Article 25(7) arrangement for NSE Clearing’s application, or when a decision on that application might come.

The EU track

The UK move follows a similar one in the EU. ESMA said in October 2022 that it would withdraw recognition of six Indian CCPs, including NSE Clearing and ICCL, because no compliant cooperation arrangements were in place with the Indian authorities, and deferred the withdrawal to 30 April 2023. On 4 September 2026 ESMA and SEBI signed a new MoU which, ESMA said, “will allow CCPs established in India and supervised by SEBI to re-apply for recognition under EMIR”. SEBI’s release on that MoU said it replaced an earlier one signed on 21 June 2017. ESMA said it was still in discussions with IFSCA.

Why it matters

For market practitioners, the question is whether UK firms can keep clearing through NSE Clearing. Under UK EMIR, recognition is what allows a non-UK CCP to serve UK clearing members and trading venues. According to the Bank’s list, as last updated on 8 July, NSE Clearing has been in the UK run-off regime since 30 April 2023 and that period ends on Friday 30 October 2026. SEBI has not said whether the MoU bears on that date.

An MoU is a precondition for recognition, not a decision. Clearing members, brokers and buy-side firms with UK entities that face NSE Clearing should check three things: whether the Bank updates its CCP lists or publishes a recognition decision; whether the 30 October exit date in the 8 July list still stands; and what their clearing brokers are telling them about access from 31 October. The two IFSC clearing houses share the same exit date but sit under a different Indian regulator.

What we are watching

• A Bank of England statement on the MoU, and any update to its recognised and run-off CCP lists.
• Any statement from NSE Clearing or NSE on UK recognition.
• Progress on ESMA’s re-recognition of SEBI-supervised CCPs, and any UK or EU arrangement with IFSCA.