Financial Market Infrastructure (FMI) is defined as a multilateral system among participating institutions, including the operator of the system, used for the purposes of clearing, settling, or recording payments, securities, derivatives, or other financial transactions. The term FMI generally refers to systemically important payment systems, Central Securities Depositories (CSDs), Securities Settlement Systems (SSSs), Central Counter Parties (CCPs), and Trade Repositories (TRs) that facilitate the clearing, settlement, and recording of financial transactions.
FMIs play a critical role in the financial system and the broader economy and contribute to maintaining and promoting financial stability and economic growth. At the same time, the FMIs also concentrate the risk and, if not properly managed, FMIs can be sources of financial shocks or a major channel through which these shocks are transmitted across financial markets. This policy document covers the following topics:
1. Financial Market Infrastructures Regulated by the Reserve Bank of India
2. Scope of Regulation and Supervision of Payment Systems in India
3. Legal Framework for Regulation and Supervision of Payment Systems
4. Implementation of “Principle of Financial Market Infrastructure” in India for Regulation and Supervision of FMIs
5. Regulation and Supervision of Trade Repositories
6. Principles for Financial Market Infrastructures