The Fixed Income Money Market and Derivatives Association (Fimmda) has formed six working groups to look into various issues pertaining to money market, namely valuation of investments, primary market issues, market practices, legal and accounting practices, products development and education and training.
The working groups will also fine-tune the current procedure for finding out yield-to-maturity prices for unquoted securities. Fimmda, in association with the Primary Dealers Association of India, has already come up with first set of prices for unquoted securities. Other factors to be considered by the working groups are the uniform code on disclosure norms of private placements and the dispute resolution mechanism.
The groups will be headed by chiefs of senior executives from various member banks. The working groups should submit their reports within a stipulated time to the association board for further action. The groups, however, are allowed to take assistance from external consultants, if felt necessary.
Each group will form broad-based teams with banks, primary dealers and financial institutions. These teams will interact with the market participants on various issues and practices relevant to the topic.
