Reserve Bank of India Introduces New Rules for Self-Regulatory Organisations in Financial Markets
The Reserve Bank of India (RBI) has introduced a framework for recognizing Self-Regulatory Organisations (SROs) in financial markets. This framework outlines objectives, responsibilities, eligibility criteria, membership, governance standards, and the application process for SROs.
SROs are expected to promote best business practices, ensure regulatory compliance, and support the development of financial markets. They will operate under the oversight of the RBI to maintain integrity, professionalism, and ethical conduct.
Interested entities can submit their applications via email or to the Chief General Manager, Financial Markets Regulation Department, Reserve Bank of India, Central Office, 9th Floor, Shahid Bhagat Singh Marg, Mumbai – 400 001.
Doubts Revealed
Reserve Bank of India -: The Reserve Bank of India (RBI) is the central bank of India. It controls the money supply and interest rates in the country.
Self-Regulatory Organisations -: Self-Regulatory Organisations (SROs) are groups that create and enforce rules for their members without government intervention. They help maintain standards and practices in industries like finance.
financial markets -: Financial markets are places where people buy and sell financial assets like stocks, bonds, and currencies. They help businesses raise money and investors make profits.
framework -: A framework is a set of guidelines or rules. In this context, it means the rules the RBI has set for recognizing SROs.
objectives -: Objectives are goals or aims. Here, it means what the SROs are supposed to achieve.
responsibilities -: Responsibilities are duties or tasks that someone is supposed to do. SROs have specific responsibilities to follow.
eligibility criteria -: Eligibility criteria are the requirements that need to be met to qualify for something. SROs must meet these criteria to be recognized by the RBI.
membership -: Membership refers to being part of a group. In this case, it means being part of an SRO.
governance standards -: Governance standards are rules about how an organization should be run. They ensure that the SROs operate fairly and effectively.
application process -: The application process is the steps you need to follow to apply for something. Here, it means how to apply to become an SRO.
regulatory compliance -: Regulatory compliance means following the rules set by authorities. SROs must ensure their members follow these rules.
Financial Markets Regulation Department -: The Financial Markets Regulation Department is a part of the RBI that oversees the rules and regulations for financial markets in India.
Mumbai -: Mumbai is a big city in India. It is the financial capital of the country and where the RBI’s Financial Markets Regulation Department is located.
