FIDC named as SRO for NBFCs

The Reserve Bank of India (RBI) has recognised Finance Industry Development Council (FIDC) as a Self Regulatory Organisation (SRO) for the Non Banking Financial Companies (NBFCs) sector. 

“The remaining two applications were not considered since they were incomplete as on the last date of submission of application,” the RBI said on Friday. 

As per RBI guidelines the primary responsibility of the SRO towards its members would be to promote best business practices so that the load on the regulator to enforce compliance is minimised. 

The SRO needs establish minimum benchmarks and conventions for professional market conduct amongst its members. In the interest of its members, the SRO should aim to protect interests of the customers/ depositors, participants and other stakeholders in the ecosystem.