RBI recognises FIMMDA as SRO for financial markets under new framework
May 7, 2025
FIMMDA has become the first financial market body to be recognised as a Self-Regulatory Organisation under the RBI's 2024 framework to enhance oversight and governance
The Reserve Bank on Wednesday recognised the Fixed Income Money Market and Derivatives Association of India (FIMMDA) as a Self-Regulatory Organisation (SRO) in financial markets.
The RBI said in its notification, “Based on an examination of the application against the relevant requirements under the framework, it has been decided to recognise FIMMDA as an SRO in financial markets regulated by the Reserve Bank.”
In August 2024, the central bank introduced a comprehensive framework for recognising Self-Regulatory Organisations within the financial markets. The framework outlines broad parameters, including objectives, responsibilities, eligibility criteria, membership, governance standards, and the application process for SRO recognition.
“Every SRO which is authorised by RBI will have to function within the framework guidelines, so in that framework we will have to see what else we can do for the market. Whatever is the framework guidelines, that is a public document. Based on that, there are some roles and responsibilities that have been given for each of these SROs which would come up. We are the first one, so we are proud of it,” said a senior executive with FIMMDA.
FIMMDA is a self-regulatory industry body established in 1998. It represents a diverse membership comprising scheduled commercial banks, primary dealers, public financial institutions, insurance companies, and other financial entities.
“The RBI had said during the FIMMDA conference that the application was under review, so this is not a surprise. FIMMDA is already an important part of the market; there won’t be major changes, only that it will be more streamlined,” said a market participant.
The association serves as the calculation agent for daily valuations of government securities and corporate bonds. It also administers key benchmarks, including the FIMMDA–NSE Overnight MIBOR, and is recognised by the RBI as the benchmark administrator for all Indian rupee interest rates.
[The Business Standard]
