FIMMDA has also constituted a Dispute Resolution Committee recently with wider representation of varied market participants to resolve the disputes arising out of erroneous trades in the government securities market. Wherever gaps are seen, the market regulator steps in to ensure orderly conduct. Financial stability concerns have been the prime motive behind such actions.
Rules prescribed by the Reserve Bank, such as, the users of CDS to buy them only with underlying exposure; placing appropriate limits on short selling; ensuring consumer protection by measures that would curb mis-selling with emphasis on “appropriateness & suitability”; placing appropriate limits on interest rate futures positions, etc. must be seen in this perspective.