How self-regulatory organisations may set their relationship with Mint Road

The risk is that there could be a multiplicity of SROs, leading to pull and push pressures

The Finance Industry Development Council (FIDC) — an association of shadow banks — is set to apply to Mint Road to become a self-regulatory organisation (SRO) even as it hunts for a chief executive officer (CEO). Non-banking financial companies’ (NBFCs) credit to GDP ratio stood at 12.6 per cent in FY23 (and it grew to 18.7 per cent of banking assets from 13 per cent a decade ago). Despite this surge, is it not surprising that little initiative was taken by these firms to set up an SRO in all these years (and Mint Road's nudge was not material to