New Delhi [India], August 19 : The Reserve Bank of India on Monday issued the framework for the recognition of Self-Regulatory Organisations in financial markets.
The framework was introduced given the potential role of Self-Regulatory Organisations (SROs) in strengthening compliance culture among their members and also providing a consultative platform for policy-making.
The framework is specified into broad parameters objectives, responsibilities, eligibility criteria, membership, governance standards and application process for the recognition of SROs in financial markets.
Interested entities seeking recognition as an SRO in financial markets may submit their application through email or to the Chief General Manager, Financial Markets Regulation Department, Reserve Bank of India, Central Office, 9th Floor, Shahid Bhagat Singh Marg, Mumbai - 400 001.
RBI said Self-Regulatory Organisations (SROs) can play a vital role in this direction by proactively developing and ensuring adoption and adherence to industry standards and best practices by its members in the financial markets.
An SRO is expected to operate with credibility, objectivity and responsibility under the oversight of the regulator, to maintain integrity, ensure professionalism, promote ethical conduct and improve regulatory compliance for healthy and sustainable development of the financial markets.
The primary responsibility of the SRO towards its members would be to promote best business practices.
In general, the SRO is expected to be an ally of the Reserve Bank in ensuring better compliance with regulatory guidelines, the development of the financial markets, the protection of stakeholder interests, fostering innovation and the detection of early warning signals.
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