RBI Designates FIMMDA as Self-Regulatory Organization for Financial Markets.

Banking & Finance | Dated: 14 May 2025

In May 2025, the Reserve Bank of India (RBI) recognized the Fixed Income Money Market and Derivatives Association (FIMMDA) as a Self-Regulatory Organization (SRO) for financial markets regulated by the RBI.

🎯 Key Highlights:

  • - This recognition empowers FIMMDA with greater authority to oversee member behavior and promote fair practices within the financial markets it governs.
  • - In August 2024, RBI issued a Framework for Recognition of SRO in Financial Markets and called for applications. To qualify, an SRO must be a not-for-profit company with a minimum net worth of ₹10 crore and a diversified shareholding structure, ensuring that no single entity holds more than 10% of the paid-up share capital.

💡 Other Important Facts:

  • (i) FIMMDA is an association comprising commercial banks, public financial institutions, primary dealers, and insurance companies, established as a company in 1998.
  • (ii) It functions as a voluntary market body for India’s fixed income, money, and derivatives markets.
  • (iii) The association represents all major institutional segments involved in the financial markets.

📚 Test Your Knowledge:

Recently, which organization was recognized by the RBI as a Self-Regulatory Organization (SRO) for financial markets?

Correct Answer: FIMMDA

🚀 Quick Recap: