The Reserve Bank of India (RBI) issued guidelines for setting up of financial benchmark administrator (FBA) for administering “significant benchmarks” in the markets for financial instruments. Significant benchmark means any benchmark notified by the Reserve Bank of India, it said adding that the central bank will notify a benchmark as a ‘significant benchmark’ taking into consideration its use, efficiency and relevance in domestic financial markets. No FBA will administer a ‘significant benchmark’ without obtaining authorisation of the Reserve Bank under these directions. However, FBAs that were already administering the ‘significant benchmark’ may continue to do so till the disposal of their applications by the Reserve Bank. FBA will be a company incorporated in India and will maintain a minimum net worth of Rs 1 crore at all times. FBAs will ensure that a ‘significant benchmark’ is designed to be an accurate and reliable representation of the referenced (specified) financial instrument. FBAs will submit to the RBI such data and reports within such timelines and in such formats as advised from time to time.

(Business Standard)