RBI Recognizes FIMMDA as SRO for Financial Markets

Current Context: The Reserve Bank of India (RBI) has officially recognized the Fixed Income Money Market and Derivatives Association of India (FIMMDA) as a Self-Regulatory Organization (SRO) for financial markets on May 7, 2025.

Key Highlights:

• First SRO Under RBI’s Framework: FIMMDA is the first financial market body to be recognized under RBI’s 2024 framework for SROs.
• Role of FIMMDA: It will oversee fixed income, money market, and derivatives operations, ensuring compliance, transparency, and governance.
• Framework Guidelines: The RBI’s framework outlines objectives, responsibilities, eligibility criteria, membership, and governance standards for SROs.
• Market Impact: The recognition strengthens self-regulation in financial markets, fostering efficient policy-making and compliance culture.

Question:

Q.1 Which organization became the first to be recognized under RBI’s 2024 SRO framework for financial markets?
a) SEBI
b) NABARD
c) FIMMDA
d) AMFI

Answer: c) The Fixed Income Money Market and Derivatives Association of India (FIMMDA) is the first body to be recognized under RBI's 2024 SRO framework.