RBI issues omnibus framework for recognising SROs for regulated entities

Kolkata: The Reserve Bank of India has come up with a final omnibus framework for self regulatory organisations mandating them to set up grievance redressal mechanisms for members and a non-discriminatory fee structure, among others.

The omnibus framework prescribes the broad objectives, functions, eligibility criteria and governance standards, which will be common for all SROs, irrespective of the sector. "The framework is the minimum requirement and the recognised SROs will be encouraged to develop their best practices," RBI said.

The dispute resolution process should consistently use efficient, fair and transparent policies and procedures that are in line with the regulatory and statutory requirements, the central bank said. They are also told to offer counselling on restrictive, unhealthy and such other practices which may be detrimental to growth of the sector.


RBI also told SROs to frame a code of conduct for their members and to monitor adherence to the code.

In general, the regulator expects SROs to be an ally of it in ensuring better compliance with the regulatory guidelines, development of the sector, protection of stakeholder interests, foster innovation and detection of early warning signals.

"In the interest of its members, the SRO should aim to protect the interests of the customers/ depositors, participants and other stakeholders in the ecosystem," RBI said.

A draft omnibus framework was issued in December last year. RBI has prepared the final one after examining the stakeholder's view and public comment on it.