The Reserve Bank of India (RBI) on Monday issued a comprehensive framework for the recognition of Self-Regulatory Organisations (SROs) in financial markets. The framework aims to bolster compliance culture among market participants and create a consultative platform for policy-making.

The framework outlines key parameters including objectives, responsibilities, eligibility criteria, membership, governance standards, and the application process for entities seeking SRO recognition in financial markets. Interested entities can submit their applications via email or to the Chief General Manager, Financial Markets Regulation Department, RBI, Central Office, Mumbai.

According to the RBI, SROs have a vital role in proactively developing and ensuring adherence to industry standards and best practices among their members. Operating under the oversight of the regulator, SROs are expected to maintain credibility, objectivity, and responsibility, promoting ethical conduct and enhancing regulatory compliance for the sustainable development of financial markets.

The primary responsibility of an SRO is to promote best business practices among its members. Additionally, SROs are envisioned as allies of the Reserve Bank, aiding in better compliance with regulatory guidelines, the development of financial markets, protection of stakeholder interests, fostering innovation, and detecting early warning signals.