Excerpt from Economictimes Article, Published on Dec 21, 2023
The Reserve Bank of India has urged self-regulatory organizations (SROs) across sectors to prioritize better compliance and safeguard stakeholders’ interests rather than solely advocating for their members. They’ve outlined common objectives, eligibility criteria, and governance standards for all SROs, emphasizing a collaborative role in upholding regulatory guidelines, sector development, stakeholder protection, innovation, and early signal detection.
Highlighting the significance of SROs in refining regulatory policies through industry expertise, the RBI stresses that self-regulation should complement existing frameworks for comprehensive compliance. The draft framework invites feedback, presenting minimum requirements while encouraging SROs to devise their best practices. Additionally, future sector-specific conditions may be introduced upon calling for SRO applications. The RBI pledges to adhere to previous agreements with recognized SROs, affirming its commitment to supporting their roles.
This framework signifies a pivotal step in aligning SRO efforts with broader regulatory objectives, fostering a collaborative approach to uphold industry standards and safeguard stakeholders’ interests.
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