New Delhi: Markets regulator Sebi Monday proposed amendments to norms governing Self Regulatory Organisations, including recognising such entities on a nomination basis. Coming out with a consultation paper, the watchdog said that an SRO would be defined as an organisation of intermediaries or an entity promoted by a stock exchange, recognised by the board.A Self Regulatory Organisation (SRO) is considered as the first level regulator. “As per the proposed process, instead of inviting applications, Sebi would recognise an entity as an SRO on nomination basis, after conducting due diligence,” the regulator said. Also Read – Thermal coal import may surpass 200 MT this fiscalSebi proposes to constitute a nomination committee to consider and give recommendation to the regulator regarding the suitability of an organisation or entity to be recognised as an SRO. The committee will comprise external experts and will preferably be headed by a retired judge of a High Court or Supreme Court. Sebi also said the recognition of an SRO may be on permanent basis subject to certain conditions. The paper further suggested that a governing board may consist of elected Also Read – Food grain output seen at 140.57 mt in current fiscal on monsoon boostrepresentatives of members of SRO public interest directors nominated by Sebi and shareholder directors. The general superintendence, direction and management of the affairs of the Self Regulatory Organisations will vest in the board and its creation, composition and functions will be specified by Sebi from time to time, it added. The SRO shall provide for a dispute resolution mechanism including arbitration to settle disputes between investors and its members and disputes between its members.