Brands
YSTV
Discover
Events
Newsletter
More

Follow Us

twitterfacebookinstagramyoutube
Yourstory
search

Brands

Resources

Stories

General

In-Depth

Announcement

Reports

News

Funding

Startup Sectors

Women in tech

Sportstech

Agritech

E-Commerce

Education

Lifestyle

Entertainment

Art & Culture

Travel & Leisure

Curtain Raiser

Wine and Food

Videos

ADVERTISEMENT

RBI issues omnibus framework for recognising SROs for regulated entities

The SROs would be a not-for-profit company registered under Section 8 of the Companies Act, 2013. The membership of SRO shall be voluntary.

RBI issues omnibus framework for recognising SROs for regulated entities

Thursday March 21, 2024 , 2 min Read

The Reserve Bank of India on Thursday issued an omnibus framework for recognising Self-Regulatory Organisations (SROs) for its regulated entities, under which SROs would be required to establish minimum benchmarks for their members.

The RBI said SROs enhance the effectiveness of regulations by drawing upon the technical expertise of practitioners and also aid in framing/ fine-tuning regulatory policies by providing inputs on technical and practical aspects.

With the growth of regulated entities (REs) in terms of number as well as scale of operations, increase in adoption of innovative technologies and enhanced customer outreach, the RBI had felt the need to develop better industry standards for self-regulation.

The framework said, SROs will be expected to operate with credibility, objectivity and responsibility under the oversight of the regulator, with the objective to improve regulatory compliance.

In general, SROs are expected to adhere to a set of overarching objectives for betterment of the sector they represent, foster advancement and address critical industry concerns within the broader financial system, it said.

"The primary responsibility of the SRO towards its members would be to promote best business practices. The SRO shall establish minimum benchmarks and conventions for professional market conduct amongst its members," the RBI's framework said.

Also Read
M&M, Adani Total Energies join hands to set up EV charging infra

The term 'members' used in the framework refers to the REs which accept the membership of the SRO.

The central bank also said a SRO is expected to be an ally of the Reserve Bank in ensuring better compliance with the regulatory guidelines, protection of stakeholder interests, foster innovation and detection of early warning signals.

The SROs would be a not-for-profit company registered under Section 8 of the Companies Act, 2013. The membership of SRO shall be voluntary.

Existing SROs already recognised by the Reserve Bank would continue to be governed by the terms and conditions under which they were recognised, unless this framework is specifically extended to such SROs.


Edited by Megha Reddy