The committee, to be called the Financial Market Consultative Committee (FMCC), will provide a structured forum for the RBI to engage with market participants and other stakeholders on issues affecting financial markets.
“The Committee will serve as a forum for structured engagement with market participants and stakeholders by the Reserve Bank on policy and operational matters related to money, government securities and foreign exchange markets as well as the respective derivative markets and infrastructure,” the RBI said.
The committee will cover the money market, government securities market and foreign exchange market, along with derivatives linked to these markets. It will also examine issues relating to the infrastructure supporting these markets.
For the RBI, the committee could provide a formal channel for obtaining feedback from banks, financial institutions, market intermediaries and other stakeholders before changes are made to market regulations or operating frameworks.
“The composition and the terms of reference for the Technical Consultative Committee shall be separately notified,” the central bank said.