Mumbai:  The Securities and Exchange Board of India (Sebi) has unveiled its Industry Standards Recognition Manual, marking a significant step towards standardising the operations of Industry Standards Fora (ISFs).

The manual, released on Wednesday, provides comprehensive guidance on the formation and functioning of these regulatory implementation bodies.

The new manual addresses these challenges by establishing uniform self-guiding principles for ISFs. These principles aim to streamline operations across different forums, particularly in areas such as regulation selection for implementation standards, consultation procedures with Sebi, and methods for gathering industry perspectives.

“The standardisation initiative comes at a crucial time when different ISFs have been operating with varying mechanisms for their functioning,” noted a Sebi release.

The manual is expected to enhance uniformity in compliance procedures while maintaining operational efficiency across all market segments.

The development follows Sebi’s initial pilot programme launched in July 2023, which introduced ISFs to facilitate the implementation of regulatory guidelines.

The programme, which originally focused on listed companies and stock brokers, has since expanded to include various market participants such as portfolio managers, custodians, designated depository participants, and alternative investment funds.

Market feedback has been notably positive, with participants highlighting the ISFs’ effectiveness in promoting good governance and ensuring high-quality regulatory compliance while maintaining operational simplicity.

However, the pilot nature of these forums has led to varying operational approaches, creating inconsistencies in their formation and functioning processes.

This strategic move by Sebi represents a significant step towards creating a more structured and efficient regulatory implementation framework in India’s financial markets.