The Reserve Bank of India (RBI) has initiated a public consultation process for its newly released ‘Draft Omnibus Framework for Recognising Self-Regulatory Organisations (SROs) for Regulated Entities’. This move, announced in the latest Monetary Policy Statement on October 6, 2023, aims to establish a more structured approach towards the governance and recognition of SROs within the RBI’s regulatory domain.
The draft framework, now accessible on the RBI’s website, outlines the foundational principles and standards for SROs. These include clear objectives, specified responsibilities, eligibility criteria, governance standards, and the process for application. Additionally, the framework details the essential conditions for the grant of recognition to these organisations.
Stakeholders, including members of the public, are invited to provide their feedback and comments on this draft framework. The deadline for submitting comments is January 25, 2024, and participants are encouraged to use the designated email channel for submissions. The RBI emphasizes that the final omnibus framework will be shaped by these stakeholder comments.
Following the finalisation of this framework, the RBI plans to issue a separate notification. This will invite applications for SROs in specific categories or classes of its Regulated Entities (REs), adhering to the guidelines established in the final framework. This step marks a significant advancement in the RBI’s approach to regulating and overseeing SROs, reflecting its commitment to inclusive and transparent governance in the financial sector.