FBIL takes over from FIMMDA for valuation of government securities

The Reserve Bank has appointed the Financial Benchmark India Pvt Ltd (FBIL) for valuation of portfolios of government securities, which earlier used to be done by FIMMDA.

In the last bi-monthly monetary policy review of 2017-18, RBI had proposed that FBIL would be tasked for valuation of government securities.

As per RBI directive, FIMMDA has ceased to publish prices/yield of government securities from March 31, 2018.

The Fixed Income Money Market and Derivatives Association of India (FIMMDA) is an association of banks, public financial institutions, primary dealers and insurance companies.

It was set up in 1998 as a voluntary market body for bond, money and derivatives market and is an interface with the regulators on various issues that impact the functioning of these markets.

In a recent notification, RBI said: "FBIL will commence publication of the g-sec (government securities) and SDL (state development loans) valuation benchmarks based on the extant methodology. Going forward, FBIL will undertake a comprehensive review of the valuation methodology."