RBI To Review Financial Benchmark Administrators’ Framework To Enhance Integrity: Das

The Reserve Bank on Thursday launched a review of the regulatory framework for financial benchmark administrators with the goal of enhancing the integrity of financial benchmarks.

Governor Shaktikanta Das stated that as part of the assessment, the RBI would set up a thorough, risk-based framework for the management of financial benchmarks.

In June 2019, rules in this respect were published.

 

The design, operation, and administration of benchmarks on prices, rates, indices, or values are under the jurisdiction of financial benchmark administrators.

 

“All benchmarks for foreign currency, interest rates, money markets, and government securities will be covered by this. According to him, the updated guidelines would increase confidence in the reliability and integrity of financial benchmarks.

 

In order to lighten the cost of compliance and encourage increased ease of doing business for monitored firms, Das also announced the consolidation and harmonization of instructions for the submission of supervisory data into a single master direction.