SEBI Calls for Recommendations: Simplifying Compliance and Reducing Costs

The Securities and Exchange Board of India (SEBI) has, through a notification dated October 4, 2023, constituted Working Groups to propose measures for simplifying, enhancing ease of compliance, and reducing the costs associated with compliance. Additionally, SEBI has extended an invitation for suggestions in this regard. The regulatory body has formed these Working Groups with the specific objective of recommending the simplification of diverse SEBI Regulations[1]. This initiative introduces Working Groups with a specific focus on simplifying compliance and reducing associated costs. The announcement aligns with a broader directive from the Union Budget for FY 2023-24, emphasizing the imperative need for a comprehensive review of existing financial sector regulations.

Guided by standing Advisory Committees, the Working Groups recommended measures for simplification, ease of compliance, and cost reduction across diverse SEBI regulations for entities such as listed companies, mutual funds, stock brokers, and more. Notably, SEBI’s initiative stands out for its proactive solicitation of suggestions from both the public and regulated entities.

SEBI’s call for suggestions, spanning regulations for portfolio managers, mutual funds, stock brokers, depository participants, and other market participants, remained open until November 6, 2023. This proactive approach underscores SEBI’s commitment to responsiveness in addressing industry dynamics and challenges, fostering adaptability in the regulatory framework and signalling a collaborative effort to simplify compliance processes and reduce costs in the financial sector.

[1] https://www.sebi.gov.in/media-and-notifications/press-releases/oct-2023/working-groups-to-recommend-on-simplification-ease-of-compliance-and-reduction-in-cost-of-compliance-suggestions-invited_77632.html