Skip to content
Free updates Login
SSCBankingUPSC & State PSCNABARD / RBI

SEBI Makes Public Consultation Mandatory for Regulation Changes

18 February 20251 min read
BANKING & FINANCESEBI Makes PublicConsultationMandatory forRegulation Changes18 February 2025safalsetu.com

Why in the news

SEBI made it compulsory to consult the public before changing its regulations, a step aimed at transparency and wider investor involvement in policymaking.

Key facts

  • Every proposed amendment to SEBI regulations must go for public consultation.
  • The draft must come with clear intent and objectives.
  • The rule was put into law through a Gazette notification of 17 February.

Significance

  • Investor confidence: participants get a say.
  • Better compliance: firms prepare in advance.
  • Policy effectiveness: rules match ground realities.

Exam angle

  • Regulator: SEBI; instrument: Gazette notification.
  • Theme: transparency and accountability in rulemaking.

Test yourself

1. What must SEBI now do before amending its regulations?

Public consultation on proposed amendments is mandatory.

2. The SEBI consultation requirement was formalised through what instrument?

It was placed in law via a Gazette notification dated 17 February.

3. What must accompany a SEBI draft amendment put up for consultation?

The draft comes with its intent and objectives.

This topic is part of Daily Current Affairs 18 February 2025 (10 topics).

All topics of the dayDay quizFebruary 2025

Read more