RBI Recognises FEDAI as Self-Regulatory Organisation for Authorised Dealers

RBI Grants SRO Status to FEDAI

In a significant regulatory development, the Reserve Bank of India has formally recognised FEDAI as a Self-Regulatory Organisation (SRO) for authorised dealers in the foreign exchange market. This recognition empowers FEDAI to set standards, enforce best practices, and act as a bridge between market participants and the regulator.

Key Highlights

• Recognition: FEDAI granted SRO status by the RBI.
• Role: Will oversee authorised dealers in the foreign exchange market.

Objectives:

• Promote ethical conduct and transparency.
• Establish and enforce industry standards.
• Strengthen compliance and governance frameworks.
• Market Impact: Enhances resilience of India’s forex market and supports financial stability.
• Industry Significance: FEDAI’s role as SRO will streamline operations, reduce regulatory burden, and foster trust among stakeholders.

This recognition marks a pivotal step in India’s financial market reforms, aligning with RBI’s broader agenda of strengthening self-regulation and ensuring orderly market functioning.

Sources: RBI Press Release, FEDAI Official Statement, Business Standard