In a big move, the market regulator has now codified the public-consultation process with its Board approving the the Securities and Exchange Board of India (Procedure for making, amending, and reviewing of Regulations) Regulations, 2024.
It codifies SEBI's approach of undertaking public consultation for making and amending regulations and also lays down the requirement of reviewing regulations. The Securities and Exchange Board of India (SEBI) issued the press statement after its board met on December 18.
The new law mandates that the proposal(s) containing the suggested changes to the policy, including the draft regulations, shall be published for public feedback ordinarily for a minimum of 21 calendar days. Also, rationale for acceptance/non-acceptance will be made public and Board Agendas will carry structured analysis of feedback from public consultation.
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For regulations in exigency, it allows for expedited processes (without public consultation or with public consultation but with reduced time period) when it is expedient in the interest of the investors, the regulation or development of the securities market. The Board shall be apprised of cases where procedure laid down in the regulations has been exempted.
The law also mandates a periodic review of regulations inter alia based on objectives, outcomes, and best practices.
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