The Securities and Exchange Board of India (Sebi) had launched a pilot programme for Industry Standards Fora (ISFs) in July 2023, to develop implementation standards for regulatory guidelines.
Initially, the ISFs were set up for listed companies and stockbrokers. Based on feedback from market participants and industry bodies, while similar fora were later introduced for other stakeholders, including portfolio managers, custodians, designated depository participants, and alternative investment funds, Sebi said in a release.
The market participants found these ISFs useful in facilitating good governance and high quality compliance with regulatory directives but also ensuring ease of compliance, it added.
However, the ISFs are operating as pilot programmes, as there are no norms in respect of their formation and functioning since each forum works with the flexibility of identifying mechanisms it finds most efficient in its functioning.
This has led to different modes for constitution and functioning including with respect to the regulations/circulars that should be taken up for formulation of implementation standards, stage at which Sebi is to be consulted, manner in which industry views are to be gathered, etc, the release said.
