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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Reserve Bank of India (Financial Benchmark Administrators) Directions, 2023

28-Dec-2023 | RBI/2023-2024/98 FMRD.FMSD.07/03.07.35/2023-24

RBI has issued Reserve Bank of India (Financial Benchmark Administrators) Directions, 2023 in supersession of the Financial Benchmark Administrators (Reserve Bank) Directions, 2019, notified vide the Circular FMRD.FMSD.17/03.07.035/2018-19 dated June 26, 2019.

Key highlights:-

1. Eligibility criteria for FBAs- An FBA administering a ?significant benchmark? shall maintain a minimum net-worth of ?5 crore at all times. An FBA administering a ?non-significant benchmark? shall maintain a minimum net-worth of ?1 crore at all times.

2. Notification of ?Significant Benchmarks?- The Reserve Bank may notify a benchmark as a ?significant benchmark? taking into consideration its use, efficiency and relevance in domestic financial markets.

3. Authorization of FBAs

i. No FBA shall administer a benchmark under the scope of these Directions without obtaining authorization from the Reserve Bank under these Directions.
ii. An FBA which is already administering a benchmark on the date of issuance of these Directions shall make an application seeking authorization under these Directions within three months from the date of issuance of the Directions. Such FBAs may continue to administer the benchmark(s) till the disposal of their application by the Reserve Bank.
iii. If an FBA which is already administering a ?non-significant benchmark? on the date of issuance of these Directions, is not desirous of seeking authorisation under these Directions, it shall cease to administer the benchmark within three months from the date of issuance of the Directions.
iv. If the Reserve Bank notifies a ?non-significant benchmark? as a significant benchmark, the FBA administering the ?non-significant benchmark? shall make an application seeking authorization to continue to administer the benchmark as a ?significant benchmark? under these Directions within three months from the date of notification.

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