.png "RBI Recognises FEDAI as Self-Regulatory Organisation for Authorised Dealers")
- FEDAI, established in 1958, has historically framed guidelines for inter-bank forex dealings and worked closely with RBI on reforms.
- This recognition comes under the Omnibus SRO Framework (2024), following FEDAI’s application and its proven role in setting conduct standards.
- The scope now extends to all Authorised Dealers (banks and FEMA-authorised entities), with FEDAI responsible for promoting best practices, ensuring ethical conduct, monitoring compliance, and fostering transparency.
- RBI has granted a one-year transition period (till Jan 2027) for FEDAI to align governance and extend membership to all categories of ADs.
- This move strengthens self-regulation, efficiency, and discipline in India’s forex market, enhancing transparency and stability.
Question:
Q.1 The Foreign Exchange Dealers’ Association of India has been recognised as a Self-Regulatory Organisation for which segment of the financial market?a) Capital market intermediaries
b) Payment system operators
c) Foreign exchange market
d) Insurance intermediaries
Answer: c) The recognition applies specifically to the foreign exchange market, covering all entities authorised to deal in foreign exchange.
