With reference to Self-Regulatory Organizations (SROs) consider the following statements:1.SRO is a non-governmental organization that is given a degree of regulatory authority over an industry or profession.2.SROs are typically established by the industry or profession itself, and they are responsible for setting and enforcing rules and standards for their members.3.SROs are always more efficient and cost-effective than government regulators.Which of the statements given above are correct?

Q. With reference to Self-Regulatory Organizations (SROs) consider the following statements:
1.SRO is a non-governmental organization that is given a degree of regulatory authority over an industry or profession.
2.SROs are typically established by the industry or profession itself, and they are responsible for setting and enforcing rules and standards for their members.
3.SROs are always more efficient and cost-effective than government regulators.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A

Notes:

Explanation –

Statements 1 and 2 are correct. SRO is a non-governmental organization that is given a degree of regulatory authority over an industry or profession. SROs are typically established by the industry or profession itself, and they are responsible for setting and enforcing rules and standards for their members.

Statement 3 is incorrect. SROs can also be expensive to operate because they also need to be staffed by qualified professionals, which can add to their costs. Further, any organization cannot be always efficient.

Source: ForumIAS

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