Promotion and Regulation of Self Regulatory Organisations

SEBI during 1996-96 took several steps to promote and regulate self regulatory organisations. The measures taken by SEBI are discussed below.

Association of Merchant Bankers of India (AMBI)

AMBI was granted recognition to set up professional standards for providing efficient services and establish standard practices in merchant banking and financial services. It was promoted for healthy business practice and to exercise overall supervision over its members in the matters of compliance with statutory rules and regulations pertaining to merchant banking and other activities. AMBI in consultation with SEBI is working towards improving disclosures standards in the offer document as well as meeting the statutory requirement in a systematic manner.

Association of Mutual Funds of India (AMFI)

The Association of Mutual Funds of India (AMFI) has been set up. SEBI undertakes regular consultations with members of AMFI on various issues affecting mutual funds. In February 1997, SEBI held a meeting with trustees of all mutual funds to discuss with them their responsibilities for prudential oversight of mutual funds in the light of SEBI (Mutual Funds) Regulations, 1996.

Association of Custodial Agencies of India (ACAI)

Following the notification of the SEBI (Custodians of Securities) Regulations, 1997, custodians of securities have registered an association, ACAI. While ACAI is still in its preliminary stages, SEBI has been engaging in a dialogue with ACAI to streamline custodial practices and to ensure that custodians do not function in isolation from the clearing and settlement systems. ACAI has also highlighted to SEBI from time to time difficulties encountered by custodians on behalf of their clients who are mainly foreign institutional investors, domestic mutual funds, financial institutions, corporates and high networth individuals.

Registrars Association of India (RAIN)

The Registrars Association of India (RAIN) a self regulatory organisation for registrars to an issue and share transfer agents has been set up.