Executive Summary:
The Reserve Bank of India (RBI) has issued the Reserve Bank of India Financial Benchmark Administrators Directions, 2023, effective immediately, to establish a risk-based framework for benchmark administrators in financial markets. These directions replace the 2019 directions. Existing benchmark administrators must apply for authorization within three months of the issuance of these directions.
Key Points / Main Content:
Scope and Definitions:
* The Directions apply to Financial Benchmark Administrators (FBAs) administering benchmarks based on financial instruments as per Section 45W of the RBI Act.
* Exemptions include benchmarks administered and used outside India, internal pricing/valuation benchmarks, and benchmarks used by clearing corporations for internal risk management.
* Definitions are provided for terms like "Administration," "Benchmarks," "Calculating Agent," "Financial Benchmark Administrator," "Financial Instruments," "Methodology," "Non-significant benchmark", "Significant benchmark" and "Submitter".
Authorization and Eligibility:
* No person can administer a benchmark without authorization from the RBI.
* Existing administrators must apply for authorization within three months. Those not seeking authorization must cease administration within three months.
* FBAs must be companies incorporated in India.
* FBAs administering significant benchmarks must maintain a minimum net worth of ₹5 crore, while those administering non-significant benchmarks must maintain ₹1 crore.
Significant Benchmarks:
* The RBI may notify benchmarks as significant, considering their use, efficiency, and relevance.
Directions for Administering Significant Benchmarks:
* FBAs are responsible for benchmark methodology, determination, dissemination, transparency, periodic review, and organizational/process controls.
* Benchmarks must accurately represent the referenced financial instrument and be based on active market transactions.
* A documented methodology must be published, including input details, sources, calculation methods, and error handling policies. Amendments require a 15-day notice.
* FBAs must establish a formal process for interacting with market participants.
* FBAs must establish an Oversight Committee, including diverse stakeholders, for regular review of the benchmark determination process, methodology and seamless transition to new benchmarks.
* Internal controls are required for data management, conflict of interest, and submission guidelines.
* FBAs must formulate a Code of Conduct for Submitters.
* A business continuity plan and periodic audits are mandatory.
* Outsourcing policies must be in place, with the FBA retaining control over data and calculations.
* Complaint management and whistleblower policies are required.
* Records must be retained for five years, and data preserved for ten years (or two years after litigation disposal).
* Significant benchmarks must be made public, either on the day of their release or with a lag not exceeding 15 days from the release.
Directions for Administering Non-Significant Benchmarks:
* Benchmarks must accurately represent the referenced financial instrument, and the methodology must be documented and published.
* An oversight function and annual methodology review are required.
* Internal controls, business continuity plans, and complaint handling policies are mandatory.
* Data must be preserved for three years (or two years after litigation disposal).
* Periodic audits are required.
Regulatory Oversight and Reporting:
* All authorized FBAs are subject to RBI's regulatory oversight, including inspections and audits.
* The RBI may impose additional conditions or restrictions.
* FBAs must submit data, reports, and compliance returns as advised by the RBI.
Revocation and Termination:
* The RBI may revoke authorization for violations or if it's prejudicial to public interest, after providing an opportunity to defend.
* Upon revocation, the FBA must cease administration and surrender the authorization letter.
* FBAs may terminate operations with prior RBI approval.
* FBAs administering significant benchmarks must have a written policy addressing grounds for termination, procedures for its termination, seamless transition to new benchmarks, consultation with stakeholders on termination and alternative or fallback provisions.
Exemption:
* The RBI may exempt an FBA from any provisions of these Directions.
Impact Analysis
Financial Benchmark Administrators (FBAs):
* Impact: Must comply with the new risk-based framework, seek authorization, and adhere to specific guidelines for administering significant and non-significant benchmarks.
* Action Required: Review current practices, ensure compliance with the new directions, apply for authorization within three months (if applicable), and implement necessary changes in methodology, oversight, and internal controls.
Submitters of Input Data:
* Impact: Subject to a Code of Conduct formulated by FBAs, requiring them to mitigate operational risks and eliminate conflicts of interest.
* Action Required: Adhere to the Code of Conduct established by the FBA, ensure data quality and integrity, and comply with submission guidelines.
Market Participants:
* Impact: Affected by changes in benchmark methodologies and the potential transition to new benchmarks.
* Action Required: Stay informed about changes in benchmark methodologies, provide feedback to FBAs, and prepare for potential transitions to new benchmarks.
Reserve Bank of India (RBI):
* Impact: Responsible for the regulatory oversight of FBAs, including authorization, inspection, and enforcement of the new directions.
* Action Required: Implement the new regulatory framework, process authorization applications, conduct inspections and audits, and enforce compliance with the directions.
Key Entities Referenced
Reserve Bank of India: The central bank of India, which issued the directions.
Financial Benchmark Administrators: Entities that administer financial benchmarks, regulated by the Reserve Bank of India.
Reserve Bank of India Financial Benchmark Administrators Directions, 2023: The title of the policy document being analyzed.
Financial Benchmark Administrators Reserve Bank Directions, 2019: The previous directions that are being superseded by the new directions.
Reserve Bank of India Act, 1934: The act that gives the Reserve Bank of India the power to issue these directions. Specifically, sections 45W and 45U are mentioned.
Financial Markets Regulation Department: The department within the Reserve Bank of India responsible for these regulations.
Mumbai, Maharashtra: City in India where the Financial Markets Regulation Department of RBI is located.
International Organization of Securities Commissions IOSCO: International body whose principles for financial benchmarks are referenced in the directions.
www.rbi.org.in
RBI/2023-24/98
FMRD.FMSD.07/03.07.35/2023-24 December 28, 2023
To
All eligible market participants
Madam/Sir
Reserve Bank of India (Financial Benchmark Administrators) Directions, 2023
Please refer to paragraph 1 of the Statement on Developmental and Regulatory
Policies dated August 10, 2023 regarding review of the Financial Benchmark
Administrators (Reserve Bank) Directions, 2019 dated June 26, 2019 (‘the Directions’).
2. Accordingly, the Directions have been reviewed to put in place a holistic risk-based
framework covering all benchmark administrators in financial markets regulated by the
Reserve Bank. The revised Directions are enclosed herewith.
3. These Directions have been issued in exercise of the powers conferred under
section 45W of the Reserve Bank of India Act, 1934 read with section 45U of the Act
and of all the powers enabling it in this behalf.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager
�वत्तीय बाज़ार �व�नयमन �वभाग,क�द्र�य कायार्लय भवन, नौवीं मंिजल, शह�द भगत �सहं माग,र् फोटर्, मुंबई–400001.भारत
फोन: (91-22) 2260 1000,फैक्स: (91-22) 22702290 ई-मेल: cgmfmrd@rbi.org.in
Financial Markets Regulation Department, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001. India
Tel: (91-22) 2260 1000, Fax: (91-22) 22702290 e-mail- cgmfmrd@rbi.org.in
�हन्द� आसान है, इसका प्रयोग बढ़ाइएRESERVE BANK OF INDIA
FINANCIAL MARKETS REGULATION DEPARTMENT
Notification No. FMRD.FMSD.08/03.07.035/2023-24 dated December 28, 2023
Reserve Bank of India (Financial Benchmark Administrators) Directions, 2023
In exercise of the powers conferred under section 45W of the Reserve Bank of India
Act, 1934 (02 of 1934) (hereinafter called the Act) read with section 45U of the Act and
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, the Reserve Bank of India (hereinafter called the Reserve Bank)
hereby issues the following Directions1.
1. Short Title, Scope and Commencement
i. These Directions shall be called the Reserve Bank of India (Financial
Benchmark Administrators) Directions, 2023.
ii. These Directions shall apply to Financial Benchmark Administrators (FBAs)
administering benchmark(s) based wholly or partially on financial instruments
referred to or specified under Section 45W of the Act.
Provided that these Directions shall not apply to administration of the following
benchmark(s):
a. Benchmarks administered and used outside India;
b. Benchmarks determined by a person and used internally by the person
for the purpose of pricing or valuation of financial instruments; and
c. Benchmarks used by the clearing corporations recognised by the
Reserve Bank or the Securities Exchange Board of India for the purpose
of internal risk management.
iii. Any authorisation granted or any action taken under the Financial Benchmark
Administrators (Reserve Bank) Directions, 2019 shall be deemed to have been
taken under these Directions.
1 These directions are based on the practices recommended by the International Organization of
Securities Commissions (IOSCO) in their report on Principles for Financial Benchmarks dated July 2013
and the Report of the Committee on financial benchmarks set up by the Reserve Bank on June 28,
2013.
2iv. These Directions shall be applicable with immediate effect.
2. Definitions
i. ‘Administration’ refers to all stages and processes involved in the production
and dissemination of a benchmark.
ii. ‘Benchmarks’ mean prices, rates, indices, values or a combination thereof
related to financial instruments that are calculated periodically and used as a
reference for pricing, valuation or settlement of financial instruments or any
other financial contract.
iii. ‘Calculating Agent’ means a person who calculates a benchmark in
accordance with the methodology set out by the financial benchmark
administrator.
iv. ‘Financial Benchmark Administrator’ (FBA) means a person who controls
the creation, operation and administration of benchmark(s).
v. ‘Financial instruments’ mean instruments referred to or specified under
section 45W of the RBI Act.
vi. ‘Methodology’, for the purpose of benchmarks includes the written rules and
procedures according to which information is collected and the benchmark is
determined.
vii. ‘Non-significant benchmark’ means a benchmark other than the ‘significant
benchmarks’.
viii. ‘Significant benchmark’ means any benchmark notified by the Reserve Bank
as a ‘significant benchmark’ under these Directions.
ix. ‘Submitter’ means any natural or legal person contributing input data for
determination of a benchmark.
3. Restriction on administration of benchmarks
Save as otherwise permitted in these Directions, no person shall administer a
benchmark covered under the scope of these Directions.
4. Eligibility criteria for FBAs
i. An FBA shall be a company incorporated in India.
3ii. 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.
5. 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.
6. 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 undertaking / intending to undertake administration of a benchmark
under the scope of these Directions, shall seek authorization from the Reserve
Bank. For the purpose, the administrator of a benchmark shall make an
application to the Chief General Manager, Financial Markets Regulation
Department, Reserve Bank of India, 9th Floor, Central Office Building, Shaheed
Bhagat Singh Marg, Mumbai – 400001.
iii. 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.
iv. 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.
v. 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.
vi. The Reserve Bank may call for any additional information or seek any
clarification from the applicant seeking authorization which, in the opinion of the
4Reserve Bank, is relevant and the applicant shall furnish such additional
information or clarification within the time prescribed by the Reserve Bank.
vii. The Reserve Bank may also obtain any additional information from Government
departments/agencies, other regulators or any other authority which, in the
opinion of the Reserve Bank, is relevant for disposal of the application.
viii. The Reserve Bank may grant an applicant the authorization to administer a
benchmark, after being satisfied that the applicant fulfils the eligibility criteria;
there is no adverse finding/ observation or material violation of any
statutory/regulatory provision by the applicant; and the grant of authorisation to
the applicant is not prejudicial to public interest or the financial system of the
country. The grant of authorisation may be subject to the terms and conditions
stipulated in the authorisation letter.
ix. The authorization granted to an FBA shall be for administration of specific
benchmark(s) and shall indicate the specific benchmark(s) for which the
authorisation has been granted. Such authorisation will be non-transferable.
x. The decision of the Reserve Bank to grant or reject the authorisation to
administer a benchmark shall be final.
7. Directions for administering ‘significant benchmarks’
i. Overall Responsibility of Authorised FBAs
FBAs, in respect of the ‘significant benchmarks’ administered by them, shall be
responsible for:
a. formulation of the benchmark calculation methodology;
b. determination of the benchmark values;
c. dissemination of the benchmark values;
d. ensuring transparency in the benchmark administration;
e. periodic review of the benchmark; and,
f. putting in place necessary organizational and process controls for effectively
carrying out the above responsibilities.
5ii. ‘Significant Benchmarks’ - Formulation, Determination and Review
a. FBAs shall ensure that a ‘significant benchmark’ is designed to be an accurate
and reliable representation of the referenced (specified) financial instrument.
b. FBAs shall ensure that the data used to construct a ‘significant benchmark’ is
based on an active market involving arm’s length transactions. Where such
transactions are not available, it shall record justification for any data,
information or expert judgment used to construct the benchmark.
c. FBAs shall establish and publish the procedure regarding the hierarchy of data
inputs and exercise of expert judgment used for the determination of ‘significant
benchmarks’.
d. FBAs shall document the methodology of calculating the ‘significant
benchmarks’ that they are administering with illustrations and publish the same
on their official website. The document shall, at the minimum, contain the
following details:
I. the inputs for calculation of the benchmark;
II. the sources of inputs;
III. the basis and manner of selection of the sources of inputs;
IV. the method of calculation including any model or the mathematical
formulae used;
V. instances where the methodology would not or cannot be adhered to
and the alternatives adopted to calculate the benchmark in such
exceptional cases;
VI. the rationale underlying the methodology and treatment of exceptions;
and,
VII. the policy for handling errors in benchmark administration, including any
revision of benchmark values.
e. Any amendment to the methodology that FBAs decide to make shall be
announced on their official websites at least 15 days prior to such amendments
coming into effect. The announcement shall delineate all aspects of the
methodology that would be amended and explain the amended methodology
with illustrations.
f. FBAs shall establish a formal process for interacting with market participants in
the benchmark administration process.
6iii. Organizational and Process Controls - Role of Oversight Committee
a. FBAs shall develop an appropriate oversight function for regular review of
various aspects of the ‘significant benchmark’ determination process. The
oversight function shall be carried out by a committee, to be called ‘Oversight
Committee’, specifically set up for carrying out the function. The FBAs shall
ensure that the Oversight Committee shall include persons with the requisite
skills and expertise necessary for the effective discharge of the functions of the
Committee.
b. The procedures involved in the ‘oversight’ function, including criteria for
selection of members, processes for selection, nomination, removal and
replacement of members, and declaration of conflict of interest, shall be
documented and made available to the stakeholders.
c. FBAs shall have a policy to ensure that the Oversight Committee has fair
representation of major stakeholders.
d. No person shall be a member of the Oversight Committee for more than five
years irrespective of the number of terms.
e. The responsibilities of the Oversight Committee shall include, at the minimum,
the following:
I. Periodic review of the methodology of the ‘significant benchmark’;
II. Enabling seamless transition to a new benchmark whenever an existing
‘significant benchmark’ is replaced, rescinded or amended;
III. Reviewing and overseeing of any changes to the ‘significant benchmark’
setting methodology and assessing whether the changed methodology
continues to appropriately reflect the underlying variable the benchmark
intends to represent;
IV. Overseeing the management and operation of the ‘significant
benchmark’ including the activities undertaken by a third party involved
in the benchmark determination;
V. Ensuring that exercise of expert judgement, if any, by the FBA is as per
the laid down policies; and,
VI. Following up for implementation of the remedial actions recommended
in the audit reports.
7f. In case of ‘significant benchmarks’ determined through submissions by
contributing entities (submitters), the Oversight Committee shall
I. Oversee the compliance by the submitters to the Code of Conduct, (as
set out in paragraph 7 (iv) (e) of these Directions) issued by the FBA and
institute an effective system to address breach of the Code by
submitters. The findings of the Oversight Committee shall be put up to
the FBA’s Board of Directors along with the action taken report; and
II. Undertake regular reviews at periods not exceeding one year to detect
potentially anomalous or suspicious submissions and initiate follow up
action thereafter. The details of such submissions and follow up action
shall be reported to the Board of Directors.
iv. Internal Control
a. FBAs shall ensure effective controls over data collection, storage, processing
and dissemination to maintain data security, confidentiality and integrity.
b. FBAs shall document and implement policies, procedures and control
framework for the identification, disclosure, management, mitigation or
avoidance of existing and potential conflict of interest. They shall also address
the conflict of interest that may exist between the ‘significant benchmark’
determination process and any other business of the Administrator or any of its
affiliates. A separate document detailing the measures taken to minimize the
conflict of interest shall be placed on the website of the FBA, a copy of which
shall also be submitted to the Reserve Bank. These policies and procedures
shall be periodically reviewed and updated by the FBA.
c. There shall be proper segregation of reporting lines within an FBA to define
responsibilities and prevent any conflict of interest or perception of such
conflicts of interest.
d. In case of ‘significant benchmarks’ determined on the basis of submissions,
FBAs shall be responsible for the following:
I. Ensure that the submitters, as a group, are appropriate for the purpose
of determination of the underlying variable the benchmark seeks to
represent.
8II. Employ a system of appropriate measures so that submitters comply
with submission guidelines, as defined in the Code of Conduct for
submitters and the Administrator’s quality and integrity standards for
submission.
III. Employ measures to effectively monitor and scrutinize submissions.
e. Code of Conduct for Submitters
I. FBAs shall formulate a Code of Conduct for submitters of inputs for
calculation of ‘significant benchmarks’ and publish the same on their
website. In this regard, the FBAs shall draw reference to RBI circular on
‘Financial Benchmarks – Governance Framework for Benchmark
Submitters’, dated April 16, 2014, as amended from time to time.
II. The Code shall include the steps to be taken by them to mitigate
operational risks and eliminate conflicts of interest. The Code shall also
include a provision for submission during transition periods arising on
account of revocation of authorisation by the Reserve Bank or
termination of the benchmark by an FBA.
f. FBAs shall have a business continuity plan and contingency procedures to
overcome disruptions to normal business.
g. FBAs shall carry out periodic audit to verify the compliance to their policies as
well as instructions issued by the Reserve Bank.
h. FBAs shall carry out independent audit of the entire benchmark administration
process that shall include audit of the inputs, calculation process and values of
the ‘significant benchmark’ on a periodic basis.
v. Outsourcing of ‘significant benchmark’ related work
a. FBAs shall put in place written policies setting out the roles and obligations of
any agency/agencies to which it outsources work to act as a calculating agent
or any other function that affects the value of the benchmark and regularly
monitor their compliance with the policies.
b. FBAs shall also put in place appropriate contingency plans to manage the
operational risks involved in the outsourced functions.
9c. FBAs shall retain adequate access to and control over the data and calculation
process and shall ensure that the data used for the calculation of benchmarks
is stored in systems located only in India.
d. In respect of any work related to ‘significant benchmark’ administration that an
FBA outsources to any entity, the FBA shall be responsible for all acts of
omissions and commissions of the entities to which it has outsourced its work.
vi. Complaint Management
a. FBAs shall have a Board approved policy to handle complaints related to
‘significant benchmark’ administration.
b. FBAs shall establish an effective ‘whistleblower’ policy to facilitate early
detection of any potential misconduct or irregularities in the ‘significant
benchmark’ administration process.
vii. Audit Trail and Data Preservation
a. FBAs shall retain all written records relating to the benchmarks for a period of
five years, which shall be made readily available to the Reserve Bank.
b. FBAs shall preserve all data in their possession in connection with ‘significant
benchmarks’ for a period of ten years from the date of receipt/creation of data.
Data related to any litigation/ dispute / arbitration / adjudication shall be
preserved for a period of two years after final disposal of the case / litigation /
dispute / arbitration / adjudication.
viii. Benchmark Publication
a. FBAs shall make public the ‘significant benchmarks’, either on the day of their
release or with a lag not exceeding 15 days from the release.
8. Directions for FBAs for administration of ‘non-significant benchmarks’
i. FBAs shall ensure that the benchmark is designed to be an accurate and
reliable representation of the referenced (specified) financial instrument. FBAs
shall document the methodology for calculating the benchmark that they are
administering, including the procedure regarding the hierarchy of data inputs,
10exercise of expert judgment used and code of conduct for submitters of inputs,
and publish the same on their official website. Any amendment to the
methodology shall also be published at least 15 days prior to coming into effect
of such amendments.
ii. FBAs shall develop an appropriate oversight function for the various aspects of
the benchmark determination process and shall undertake a review of the
methodology of the benchmark, at least once in a year.
iii. FBAs shall ensure effective internal controls over data collection, storage,
processing and dissemination to maintain data security, confidentiality and
integrity. FBAs shall have a business continuity plan and contingency
procedures to overcome disruptions to normal business.
iv. FBAs shall have a Board approved policy to handle complaints related to
benchmark administration.
v. FBAs shall preserve all data in their possession in connection with the
benchmarks they administer for a period of three years from the date of
receipt/creation of data. Data related to any litigation/ dispute / arbitration /
adjudication shall be preserved for a period of two years after final disposal of
the case / litigation / dispute / arbitration / adjudication.
vi. FBAs shall carry out periodic audit to verify the compliance to these Directions,
their policies as well as any instructions that may be issued by the Reserve
Bank from time to time.
vii. The Reserve Bank, on being satisfied that it is necessary to do so, may
mandate FBAs administering ‘non- significant benchmarks’ to comply with other
provisions of these Directions as applicable to FBAs administering ‘significant
benchmarks’. The Reserve Bank may also notify a ‘non-significant benchmark’
as a ‘significant benchmark’ and mandate its administrator to seek authorization
from the Bank as an FBA administering ‘significant benchmark’.
9. Regulatory Oversight Framework
i. All FBAs authorised under these Directions shall be subject to a regulatory
oversight framework of the Reserve Bank under which the Reserve Bank may,
inter alia, conduct onsite inspection or direct a special audit of the FBAs.
11ii. The Reserve Bank may impose additional conditions or restrictions on an FBA
if the FBA is found to be violating the conditions of these Directions or any other
rules, regulations of conditions of authorisation.
10. Reporting
i. All FBAs authorised under these Directions shall submit to the Reserve Bank
such data and reports within such timelines and in such formats as advised
from time to time.
ii. FBAs shall also submit periodic return/report on their compliance with the
directions/instructions issued by the Reserve Bank within such timelines and in
such formats as advised from time to time.
11. Revocation of authorisation
i. The Reserve Bank may revoke the authorisation granted to an FBA for
administration of one or more benchmarks, based on adverse findings/
observations or material violation of any statutory provisions or any of the
provisions of these directions or any condition of authorisation or on being
satisfied that the continuance of authorisation is prejudicial to public interest or
financial system of the country. No such action shall be taken by the Reserve
Bank without providing reasonable opportunity to the FBA to defend its actions.
ii. On revocation of the authorisation, the FBA shall cease administration of the
benchmark in the manner and within the timeframe stipulated by the Reserve
Bank. The Reserve Bank may stipulate the FBA to continue administering the
benchmark in the manner prescribed by it till such time an alternate
arrangement is made. During this interim period, the FBA may also be
subjected to enhanced monitoring including third party audit as the Reserve
Bank may deem fit.
iii. In case of revocation of authorisation, the FBA shall surrender to the Reserve
Bank the letter of authorisation in original.
iv. The decision of the Reserve Bank, to revoke authorisation of an FBA
administering benchmark(s) shall be final.
1212. Termination of Operation
i. An FBA which is authorised under these Directions to commence or carry
administration of a benchmark, may terminate its operation with the prior
approval of the Reserve Bank and shall comply with the terms and conditions
stipulated by the Reserve Bank.
ii. The Reserve Bank may require an FBA to continue administering a benchmark,
proposed to be terminated, till such time any alternative arrangement is made.
During this interim period, the FBA may also be subjected to enhanced
monitoring including third party audit as the Reserve Bank may deem fit.
iii. In case of termination of operation, the FBA shall surrender to the Reserve
Bank the letter of authorisation in original.
iv. FBAs administering ‘significant benchmarks’ shall have a written policy
addressing the following:
a. the grounds for termination of a ‘significant benchmark’;
b. procedures for its termination;
c. procedure enabling seamless transition to a new benchmark whenever an
existing ‘significant benchmark’ is replaced;
d. consultation with stakeholders on termination; and,
e. alternative or fallback provisions.
13. Exemption from the provisions of these directions
The Reserve Bank may, on an application made to it and on being satisfied that it is
necessary to do so, exempt an FBA either generally or for such period as may be
specified, from any or all of the provisions of these Directions, subject to such terms
or conditions or limitations or restrictions as it may think appropriate, in the interest of
the public or the financial system of the country.
(Dimple Bhandia)
Chief General Manager
13