Sebi's Madhabi Puri may soon formalise a feedback forum of veterans into regulatory framework

SEBI aims to leverage the expertise of industry bodies to enhance the effectiveness of regulatory standards.

Capital market regulator is considering to make the forum for feedback and stakeholder consultation a formal part of the regulatory framework, and will soon move a proposal to formalise this to Sebi's board for approval, Chairperson Madhabi Puri Buch said on August 2, speaking at a FICCI event in Mumbai.

"We have taken to our Board to make it a formal part of the regulatory architecture," Buch said. "This process of industry standard forum across the spectrum has been such a learning experience for us."

Buch highlighted how the Industry Standards Forum has successfully brought together key stakeholders to draft and implement regulatory standards. She noted the forum's structured approach, with senior industry figures meeting every Saturday, followed by coordination with stock exchanges on Mondays and Sebi on Wednesdays.

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"Every Saturday, senior people from the industry would meet for 2-3 hours, the following Monday they would meet with exchanges, and they would meet with us on Wednesday... and such sensible feedback," she said.

Sebi had recently introduced this method by inviting three main industry associations to form the Industry Standards Forum, to assists in designing and implementing standards for proposed regulations.

This method of feedback on regulations aims to leverage the expertise of industry bodies to make regulatory standards more effective. The involvement of industry experts has been lauded as innovative and practical, as it ensures the regulations are grounded in the realities of market operations and practices.

The first regulation addressed by the forum was related to rumour verification, marking a significant step in Sebi's efforts to incorporate industry feedback into its regulatory processes. "Today, the companies are regularly reporting (on rumour verification)," Buch said. Her comments emphasise the success and potential of the collaboration between the industry and the regulator. "We want to think with you, for you, and together," she said.