Press Release: 2025-2026/274, Dated: 07.05.2025
The Reserve Bank of India (RBI) has officially recognised the Fixed Income Money Market and Derivatives Association of India (FIMMDA) as a Self-Regulatory Organisation (SRO) for entities operating in the financial markets regulated by the central bank.
1. Background and Basis of Recognition
This recognition follows a thorough evaluation of FIMMDA’s application under the RBI’s Framework for Recognition of Self-Regulatory Organisations, which sets out the eligibility, governance standards, and operational criteria for such recognition.
2. Significance of the Move
- Enhanced Oversight and Governance – As an SRO, FIMMDA will play a pivotal role in promoting ethical conduct, standardisation of practices, and compliance among its members, which include participants in the fixed income, money market, and derivatives segments.
- Market Discipline and Development – The recognition is aimed at fostering greater self-discipline and accountability within the financial market ecosystem. It also empowers FIMMDA to issue guidelines, enforce codes of conduct, and support orderly market development in alignment with regulatory expectations.
- Support for Regulatory Objectives – By acting as a bridge between the regulator and market participants, FIMMDA’s role as an SRO will help in better dissemination of regulatory changes, feedback collection, and implementation of best practices across the sector.
3. Way Forward
The recognition underscores the RBI’s intent to promote a more structured and participatory regulatory environment by leveraging industry-led initiatives. FIMMDA’s elevation to an SRO status is expected to contribute significantly to the maturity and transparency of India’s debt and derivatives markets.
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