The Fixed Income Money Market and Derivatives Association of India (FIMMDA), is an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers, and Insurance Companies. It is a voluntary market body for the Fixed Income, Money, and Derivatives Markets, incorporated as a company under section 25 of the Companies Act 1956.
Functions of FIMMDA:
FIMMDA acts as a principal interface with the regulators on various issues that impact the functioning of fixed-income money Markets and Derivatives markets. FIMMDA also undertakes developmental activities, such as the introduction of benchmark rates and new derivatives instruments, etc. In addition, the association provides training and certification to its members including development assistance to dealers and support personnel at member institutions. It helps the members with legal and accounting norms, documentation requirements, and valuation methodologies as well as facilitates the smooth and orderly functioning of the market.
FIMMDA addresses issues that affect the entire industry, by setting up a dispute resolution mechanism and acting as an arbitrator for disputes, if any, between member institutions. Further, it adopts/develops international standard practices and a code of conduct in the above fields of activity and devises standardized best market practices as well as creating new products and addressing the attendant details.
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