SELF-REGULATORY ORGANISATION

        SELF-REGULATORY ORGANISATION         

CONTEXT:- 

The securities and exchange boards of India (SEBI) has porpoised a self-regulatory organisation (SRO) for growing number of investment advisers to address issues related to the quality of advice given to investors by such entities.

ABOUT SRO:- 

# An SRO is the first-level regulator that performs the crucial task of regulating intermediaries representing a particular segment of securities market on behalf of the regulator.

# An SRO would be seen as an extension of the regulatory authority of the SEBI and would perform the task delegated to it by the SEBI.

# The role of an SRO is development, regulatory, related to the grievance redressal and dispute resolution as well as taking disciplinary action.

NEED OF SRO:- 

# SEBI was in receipt of range number of complaints alleging charging of exorbitant fee's, assurance of returns, misconduct etc. by investment advisers.

# Taking account of growth in this segment of the market, It was feet that the time is appropriate to initiate the performance of an SRO.