The Reserve Bank of India said on Wednesday that it has recognized fixed income money market and derivatives Association of India as financial markets of a self-control organizations regulated by the central bank.
In August last year, RBI released the outline for the recognition of SRO in financial markets.
The criteria were issued in view of the possible role of SRO in strengthening compliance culture among their members and providing a consultant for policy making.
The statement said, an application was obtained from Fimda, a recognized by the Reserve Bank as an SRO in the regulated financial markets.
“Based on an examination of application against relevant requirements under framework, it has been decided by the Reserve Bank to recognize Fimda as SRO in the financial markets regulated,”.
Fimda, a union of commercial banks, public financial institutions, primary dealers and insurance companies was included in May 1998 as a company.
Fimda is a voluntary market body for fixed income, money and derivative markets.
It has members representing all the major institutional sections of the market.
Framework specifies extensive parameters, including objectives, responsibilities, eligibility criteria, membership, governance standards and application process for the recognition of SRO in financial markets.
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