The Securities and Exchange Board of India (SEBI) has proposed a self regulatory organisation (SRO) for the growing number of investment advisers to address issues related to the quality of advice given to investors by such entities.
About:
Meaning: SRO is an organization representing a particular segment of entities, which, as a first level regulator, regulates the members of that segment.
Role: A SRO for a segment of intermediaries in the securities market would be entrusted with the role of being the first level regulator for such intermediaries, who are its members.
Importance: Globally it is observed that SROs have played an important role in the development of the securities market in several jurisdictions and effectively assisted the regulator in discharging its regulatory duties.
SRO regulations in 2004: SEBI had notified the SRO regulations in 2004. As on date, the said regulations are in force only in relation to distributors engaged by Asset management companies of mutual funds and distributors engaged by portfolio managers.
Dear Student,
You have still not entered your mailing address. Please enter the address where all the study materials will be sent to you. (If applicable).
