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Informist, Wednesday, May 7, 2025

 

--RBI recognises FIMMDA as self-regulatory body

 

NEW DELHI – The Reserve Bank of India has accepted an application from the Fixed Income Money Market and Derivatives Association of India to be recognised as a self-regulatory organisation. "An application seeking recognition as an SRO (self-regulatory organisation) in financial markets regulated by the Reserve Bank was received from the Fixed Income Money Market and Derivatives Association of India (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," the central bank said in a statement Wednesday.

 

The RBI, in August last year, had issued a framework to recognise self-regulatory organisations in financial markets and invited applications from entities that were interested in such recognition. As per the framework, self-regulation must complement the existing legislative and regulatory framework and help to further develop the financial markets in terms of enhanced integrity, professionalism, compliance, innovation, and ethical conduct.

 

"In deliverance of this role, the SRO shall frame necessary best practices/standards/codes within the regulatory framework prescribed by the Reserve Bank of India for voluntary adoption by its members and these shall not be a substitute to the prescribed regulatory framework. The promotion of compliance culture established through high levels of internal governance can help reduce the compliance burden on market participants and promote an ecosystem conducive to the development of the financial markets," the RBI had said last year.

 

The Fixed Income Money Market and Derivatives Association of India is the second organisation to be granted the self-regulatory tag by the RBI. In August, the central bank had recognised the Fintech Association for Consumer Empowerment, or FACE, as a self-regulatory organisation in the financial technology sector. Similar applications for recognition as self-regulatory organisations have been invited by the central bank from the account aggregator ecosystem and the non-banking finance companies sector.  End

 

Reported by Siddharth Upasani

Edited by Rajeev Pai

 

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