Description:  

Industry Standards Recognition Manual sets up a structured way for industry groups, called Industry Standards Forums (ISFs), to create and follow best practices for complying with SEBI’s regulations. These ISFs will help regulated entities like stock exchanges, mutual funds, and listed companies understand and implement SEBI’s rules through detailed procedures, checklists, and SOPs (Standard Operating Procedures). 

Key Highlights: 

1. Purpose of ISFs: These forums will not have regulatory powers but will act as guidance bodies to help industry players comply with SEBI’s regulations efficiently.

2. Who Runs ISFs: 

• They will be led by a chairperson with at least 10 years of experience, supported by Vice-Chairpersons and a Secretariat. 

Members will include industry representatives like Market Infrastructure Institutions (MIIs), market participants, and regulatory advisors. 

3.How They Work: 

• ISFs will consult SEBI regularly while developing standards. 

• They will focus on clear, specific, and step-by-step procedures for compliance. 

• Industry input will be taken, and discussions will be held to ensure the standards align with SEBI’s intent.

4. Are These Standards Mandatory? 

• Once SEBI approves and recognizes an ISF’s standards, they become mandatory for the concerned industry participants. 

Following these standards will generally mean compliance with SEBI regulations.

5.What If Rules Change? 

• If SEBI amends regulations, the ISF must update the standards accordingly. 

• SEBI can reject or request modifications to any standards that don’t align with regulatory objectives. 

6. Existing Pilot ISFs: ISFs already functioning under SEBI’s earlier framework will have six months to adapt to the new rules. 

This setup ensures industry-wide consistency, reduces compliance risks, and provides a structured approach to implementing SEBI’s regulations.