When the regulated become the regulator

Effectively involving the regulated entities in the rule-making process and crowd-sourcing ideas help create a better-governed market economy

On October 4, 2023, market regulator Securities and Exchange Board of India (Sebi) invited suggestions from the public for a comprehensive review of a large chunk of its regulations, with a one-month timeframe for responses. Several other regulators have also initiated similar exercises, in line with the government’s proposal in the Union Budget for 2023-24.

The Budget stated: “To meet the needs of Amrit Kaal and to facilitate optimum regulation in the financial sector, public consultation, as necessary and feasible, will be brought to the process of regulation-making and issuing subsidiary directions”. It also proposed: “To simplify, ease and reduce