FIMMDA Named First SRO Under RBI’s Framework
Why in the news
RBI recognised FIMMDA, the Fixed Income Money Market and Derivatives Association of India, as the first SRO in its new market framework.
Key facts
- Framework (August 2024) covers objectives, eligibility, governance, membership and recognition steps.
- FIMMDA will promote standard practices, ethics, transparency and stability.
What is an SRO?
- A non-governmental body that frames and enforces rules for its own segment.
- Eases the burden on statutory regulators.
About FIMMDA
| Aspect | Detail |
|---|---|
| Established | 1998 |
| Members | Banks, primary dealers, insurers, public financial institutions |
| Roles | Valuation of G-secs and corporate bonds; rupee benchmark administrator; calculation agent |
Significance
- Builds self-discipline, lowers need for direct intervention, deepens debt markets.
Exam angle
- First SRO under RBI’s framework: FIMMDA.
- Benchmark administered: FIMMDA-NSE Overnight MIBOR.