SEBI Introduces Industry Standards Manual For Regulatory Compliance By ISF

SEBI Introduces Industry Standards Manual For Regulatory Compliance By ISF

This initiative hopes to promote good governance within the securities market

The Security and Exchange Board of India (SEBI) has released the Industry Standards Recognition Manual to guide the formation and functioning of Industry Standards Fora (ISF) and help in implementing regulations.

Launched in July 2023, the pilot program was initially for listed companies and stockbrokers. However, the scheme was expanded on receiving feedback from market participants. It was extended to stakeholders, including portfolio managers, custodians, designated depository participants, and alternative investment funds.

The ISFs became facilitators of good governance, easing compliance with high-quality regulatory directives.

Speaking on the subject, Jyoti Prakash Gadia, Managing Director at Resurgent India, remarked, "SEBI's fresh circular on Industry Standards Manual will have a positive impact on the implementation of regulations and ease of compliance. It indicates a proactive approach of the regulator to make the operations of the securities market robust and sustainable.”

As each forum worked with the flexibility of identifying mechanisms it was found to be most efficient in functioning, leading to varied structures.

SEBI stated that the challenges persist with regulations and circulars required for implementing the standards. The views of the industry will be gathered.

Gadia further stated, "The various regulated entities like market infrastructure institutions, including stock exchanges and listed entities, can establish industry-standard forums by way of committees and prepare standards of operating procedures based on specifics in each type and category of regulated entities.”

Meanwhile, the direction designates a member as its 'point of contact' responsible for the interactions of the ISF with SEBI, to facilitate timely and seamless interaction and discussions.

The Resurgent India official added, "The proposed manual has laid down the rules for a well-defined structure of the forums with a provision of appointment of sherpas/point of contact, to ensure regular and fruitful intersection through the nodal officer.”