What is Foreign Exchange Dealers' Association of India (FEDAI) ?
Foreign Exchange Dealer's Association
of India (FEDAI) was set up in 1958 as an Association of banks dealing in
foreign exchange in India (typically called Authorised Dealers - ADs) as a self
regulatory body and is incorporated under Section 25 of The Companies Act,
1956. It's major activities include framing of rules governing the conduct of
inter-bank foreign exchange business among banks vis-à-vis public and liaison
with RBI for reforms and development of forex market.
Presently some of the functions are
• Guidelines and Rules for Forex
• Training of Bank Personnel in the
areas of Foreign Exchange Business.
• Accreditation of Forex Brokers
• Advising/Assisting member banks in
settling issues/matters in their dealings.
• Represent member banks on
Government/Reserve Bank of India/Other Bodies.
• Announcement of daily and periodical
rates to member banks.
Due to continuing integration of the
global financial markets and increased pace of de-regulation, the role of
self-regulatory organizations like FEDAI has also transformed. In such an
environment, FEDAI plays a catalytic role for smooth functioning of the markets
through closer co-ordination with the RBI, other organizations like FIMMDA, the
Forex Association of India and various market participants. FEDAI also
maximizes the benefits derived from synergies of member banks through
innovation in areas like new customized products, bench marking against
international standards on accounting, market practices, risk management