RBI Identifies FIMMDA as SRO for Financial Markets

The Reserve Bank on Wednesday announced it has approved the Fixed Income Money Market and Derivatives Association of India (FIMMDA) as an SRO in central bank-regulated financial markets.

Last year in August, the RBI had released the framework for Self-Regulatory Organisations (SROs) recognition in financial markets.

The guidelines were issued in consideration of the role that SROs could play in enhancing compliance culture among members and also as a consultative forum for policy formulation.

The statement added, an application to be recognized as an SRO in financial markets regulated by the Reserve Bank was received from the FIMMDA.

"On an analysis of the application in light of the pertinent requirements under the scheme, a decision has been taken to approve FIMMDA as an SRO for financial markets supervised by the Reserve Bank," it added.

FIMMDA, which is a grouping of commercial banks, public sector financial institutions, primary dealers, and insurance companies, was registered as a company in May 1998.

FIMMDA is a voluntary market body of the fixed income, money and derivatives markets.

It has representatives of all key institutional segments of the market as its members.

The structure sets forth the wide-ranging parameters, including objectives, responsibility, eligibility rules, membership, governance criteria, and procedure of application for SROs to be recognized in financial markets.