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

RBI vide circular dated December 28, 2023 has issued the Reserve Bank of India (Financial Benchmark Administrators) Directions, 2023 to put in place a holistic risk-based framework covering all benchmark administrators in financial markets regulated by the Reserve Bank.

FBAs, in respect of the ‘significant benchmarks’ administered by them, shall be responsible for:

1. Formulation of the benchmark calculation methodology;
2. Determination of the benchmark values;
3. Dissemination of the benchmark values;
4. Ensuring transparency in the benchmark administration;
5. Periodic review of the benchmark; and,
6. Putting in place necessary organizational and process controls for effectively carrying out the above responsibilities.