Decisions at FIMMDA are taken through the following Working Committees:

1. VALUATION COMMITTEE:

This committee deals with valuation and related issues of specific debt and derivative instruments traded in Indian Financial Market. This includes the following:

• Valuation of Government Securities - Mandate by the Reserve Bank of India

• Introduction of Benchmarks - Range from the overnight rate benchmark to long term benchmark yields

• Valuation of Corporate Bonds

• Valuation of Floating Rate Bonds

• Valuation of State Development Loans

• Clarifications on guidelines for Valuation of non-SLR securities

2. MARKET PRACTICES COMMITTEE:

This committee deals with issues relating to development of market infrastructure for various debt and derivative instruments. The committee has worked on the following issues:

• Issues relating to development of market infrastructure for Corporate Bond Market and Securitisation for discussion in the High Level Expert Committee on Corporate Bonds and Securitisation

• Issues relating to NDS-OM

• Updation of the Market Practices Handbook.

• Study of the RBI Technical Group Report on the Central Government Securities Market.

• Discussions on Circular on Intra day Short - Selling of GOI Securities

• Revival of proposal for Accreditation of Brokers for OTC Derivatives.

• Discussion on RBI Circular on Guidelines on Securitisation of Standard Assets.

3. PRODUCT DEVELOPMENT COMMITTEE:

This committee deals with introduction of Derivative products along with the training and educational needs of the market with reference to newly introduced products. Some of the issues dealt by this committee:

• Introduction of web-based e-learning course syllabus for Treasury Officials conducted by IIBF in collaboration with M/S KESDEE and FIMMDA.

• Introduction of "Basic Course of Derivatives" conducted by Mr. Ashish Ghiya of Derivium Capital & Securities Pvt. Ltd.

• Valuation methodology for MIFOR Swaps.

• Valuation methodology for INBMK Swaps.

• Discussion of use of Collateralized Benchmark Reference Rates - CCIL Collateralized Benchmark Bid Rate (CCBID) and CCIL Collateralized Benchmark Offer Rate (CCBOR) for Indian fixed income securities market as an index rate.

• Discussion on RBI's proposed guidelines for fixing of limits for "Non-Option (Rupee) Derivative Contracts"

• Seeking amendments to the RBI Master Circular on Risk Management and Inter Bank Dealings.

• Discussion on fixing of Individual Exposure limits for MIFOR Swaps.

• Discussion with the Reserve Bank of India on fixing of Individual Exposure limits for MIFOR Swaps.

• Discussion regarding permissibility of various Derivative Structures in the Market.

• Discussions regarding approaching RBI for fixing of internal limits on MIFOR positions

• Preparation of Code of Conduct for Derivative Transactions

• Discussion on RBI Circular regarding introduction of Credit derivatives in India.

4. TREASURY OPERATIONS COMMITTEE :

This committee deals with LEGAL, ACCOUNTING and RISK MANAGEMENT aspects of treasury operations. Some of the issues dealt by this committee:

• Disaster Recovery and Business Continuity Plan for treasury operations of Banks and PDs.

• Discussion on emerging issues relating to Basel II implementations in Banks.

• Recommendations on the Draft of proposed Accounting Standard on Financial Instruments: Presentation, prepared by the Accounting Standards Board of ICAI.

• Discussion regarding Accounting Practices for CBLO Transaction.

• Discussion on Accounting Entries relating to inter - category transfers, "Redemption Loss " on securities held in AFS category and Derivative transactions

• Amendments suggested to the Securities Contracts (Regulation) Amendment Bill 2005.

• Issue of stamp duty payable on the G-Sec deals as per the Bombay Stamp (Amendment) Ordinance 2005 dated 7th May 2005.

• Discussion on draft guidelines on improvements to banks' Asset Liability Management framework.