Question map
The acronym SRO, being used in the capital market for various market participants, stands for which one of the following ?
Explanation
In the context of capital markets, the acronym SRO stands for Self-Regulatory Organisation. An SRO is a non-governmental entity that is authorized by a statutory regulator to oversee and regulate the activities of specific market participants or industry segments [t1][t9]. These organizations establish and enforce industry standards, ethical codes of conduct, and professional practices among their members to ensure market integrity and investor protection [t4][t6]. In India, the Securities and Exchange Board of India (SEBI) recognizes SROs to represent various segments of the securities market [t1]. Similarly, the Reserve Bank of India (RBI) has established frameworks for recognizing SROs in the financial and fintech sectors to complement existing legislative oversight [t8][t9]. Globally, prominent examples include FINRA in the United States and various exchange-based SROs that manage member regulation and dispute resolution [t2][t5][t10].
Sources
- [1] https://www.sebi.gov.in/sebi_data/commondocs/sroregu_h.html?QUERY
- [2] https://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authority