SEBI Launches Industry Standards Fora to Streamline Regulatory Compliance

On February 12, 2025, the capital market regulator launched an Industry Standards Recognition Manual to guide the formation and functioning of Industry Standards Fora, which helps in implementing regulatory instructions.

Launch of Pilot Programme for Industry Standards Fora (ISF)

In July 2023, SEBI launched a pilot programme for Industry Standards Fora (ISF) aimed at developing implementation standards for regulatory instructions issued by SEBI. Initially, the focus was on creating standards for listed companies and stock brokers. Following positive feedback from market participants and industry bodies, similar forums were established on a pilot basis for other stakeholders in the securities market, such as portfolio managers, custodians, designated depository participants, and alternative investment funds.

Feedback from Market Participants

Market participants have expressed that the implementation standards developed through industry collaboration and in consultation with SEBI have proven to be beneficial. These standards not only facilitate good governance and high-quality compliance with regulatory directives but also simplify the compliance process for industry players.

Current Status of Industry Standards Fora

While the ISFs are still in the pilot phase, there are no formal norms governing their formation and functioning. Each forum operates with flexibility, allowing them to identify mechanisms that they find most efficient for their operations. As a result, there are variations in the methods used to constitute the forums, determine which regulations or circulars should be addressed for implementation standards, the stage at which SEBI is to be consulted, and how industry feedback is gathered.

SEBI’s Initiative to Streamline ISF Operations

In light of the valuable insights gained from the various ISFs, SEBI has decided to implement a set of self-guiding principles. These principles are designed to streamline the constitution and processes of the ISFs, ensuring that they function in a manner that promotes representativeness. This approach aims to ensure that the standards developed reflect the real challenges faced by industry participants when complying with regulations and circulars.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.