RBI grants SRO status to FIMMDA for oversight of financial markets

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

In August last year, the RBI had issued the framework for recognition of Self-Regulatory Organisations (SROs) in financial markets.

The norms were issued in view of the potential role of SROs in strengthening compliance culture among their members and also providing a consultative platform for policy making.

The statement said, an application seeking recognition as an SRO in financial markets regulated by the Reserve Bank was received from the FIMMDA.

"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," it said.

FIMMDA, an association of commercial banks, public financial institutions, primary dealers, and insurance companies was incorporated as a company in May 1998.

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

It has members representing all major institutional segments of the market.

The framework specifies the broad parameters, including objectives, responsibilities, eligibility criteria, membership, governance standards, and application process for the recognition of SROs in financial markets.