Pilot Regulatory Impact Assessments and Training for the Financial Sector 

Background

CUTS International is collaborating with the Securities and Exchange Board of India (SEBI) to conduct two pilot Regulatory Impact Assessments (RIA) and a specialized training program for the securities market. This initiative aims to institutionalize evidence-based policymaking by evaluating the costs and benefits of specific regulatory mechanisms and enhancing the technical capacity of financial sector professionals.

Key Objectives

Conduct Pilot Studies: Perform a comprehensive Regulatory Impact Assessment on two critical areas:

  • The Pledge–Repledge Mechanism
  • The T+1 Settlement Cycle
  • Capacity Building: Deliver a four-day RIA training program for the financial sector, utilizing findings from the pilot studies as practical case studies.
  • Evidence-Based Recommendations: Provide SEBI with quantitative and qualitative data to refine existing frameworks and validate regulatory assumptions.

    • Methodology & Approach

    The project is structured over a 3.5-month timeframe, employing a concurrent workflow for the pilot studies followed by an intensive training phase:

  • Analytical Framework: Identifying baselines and developing regulatory alternatives for the selected pilot areas.
  • Stakeholder Engagement: Mapping and consulting with key informants and focus groups to gather diverse market perspectives.
  • Data-Driven Analysis: Using modeling tools to estimate the costs and benefits of regulations, utilizing both public and non-public data provided by SEBI.
  • Practical Training: A four-day program delivered in two batches, focusing on cross-sectoral use cases and the findings of the pilot RIAs.

    • Project Deliverables
    • Detailed synthesis reports for both pilot studies with evidence-based recommendations.
    • A specialized RIA curriculum for financial sector regulators.
    • Presentation materials and training resources based on real-world securities market scenarios.

    What’s New

    • Project Brief

    About the Project

      The project, focuses on conducting an Ex-Post Regulatory Impact Assessment (RIA) of two major securities market reforms — the Pledge-Repledge Mechanism and the T+1 Settlement Cycle. The initiative aims to evaluate the real-world impact of these reforms on market efficiency, investor protection, transparency, and operational effectiveness within India’s financial markets.

      The study is designed to strengthen evidence-based policymaking by assessing whether the intended regulatory objectives have been successfully achieved and by identifying any unintended consequences or implementation challenges faced by stakeholders such as investors, brokers, and clearing corporations.

      Using globally recognised RIA methodologies aligned with international best practices, the project combines empirical research, stakeholder consultations, data analysis, and cost-benefit assessment to generate actionable policy insights. The findings will support the development of a more transparent, efficient, and responsive regulatory ecosystem in India’s securities market.

      In addition to the research component, the project also includes a capacity-building initiative aimed at institutionalising RIA practices within SEBI. Specialized training modules and case-based learning sessions will be developed to enhance the understanding and practical application of Regulatory Impact Assessment methodologies among regulatory officials and stakeholders.

      The project will ultimately deliver comprehensive RIA reports on both reforms along with policy recommendations and training frameworks to support future evidence-based regulatory decision-making in India’s financial sector.

    Project Partner

      Securities and Exchange Board of India (SEBI) was established in 1988 as a non-statutory body and later became a statutory regulator under the SEBI Act, 1992. SEBI’s primary objective is to protect investor interests, regulate the securities market, and promote the orderly development and transparency of India’s capital markets.

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    Contact Us

    Consumer Unity & Trust Society (CUTS)
    D–217, Bhaskar Marg, Bani Park, Jaipur 302016, Rajasthan, India
    Ph: +91 141 2282821, Fax: +91 141 2282485