SEBI Advisory Committees
SEBI constitutes various advisory committees comprising market participants, academics, and independent experts to provide domain-specific recommendations on policy development, including the Primary Market Advisory Committee (PMAC) and the Secondary Market Advisory Committee (SMAC) among others.
SEBI's advisory committee structure is central to its consultative regulatory approach. Rather than formulating regulations unilaterally, SEBI convenes domain experts to deliberate on complex issues, gather market feedback, and recommend balanced regulatory frameworks. These committees function as think tanks providing non-binding but influential guidance.
The Primary Market Advisory Committee (PMAC) advises on matters related to public issues, rights issues, offer-for-sale, depository receipts, and other primary market transactions. PMAC has been responsible for recommendations that shaped the ICDR Regulations, the IPO application process revisions including the ASBA mechanism, and the graded surveillance framework for SME IPOs.
The Secondary Market Advisory Committee (SMAC) covers trading, settlement, clearing, stock exchange governance, and related issues. SMAC recommendations have influenced circuit breaker revisions, co-location policy after the NSE controversy, T+1 settlement rollout, and the block deal window expansion.
Other committees include the Mutual Fund Advisory Committee (MFAC), the Corporate Bonds and Securitisation Advisory Committee (CoBoSAC), the Alternative Investment Policy Advisory Committee (AIPAC), and more recently, the ESG Advisory Committee.
Committee composition typically includes nominees from stock exchanges, depositories, institutional investors, mutual funds, broking industry bodies (ANMI, BSE Brokers Forum), law firms, and independent academics. SEBI chairpersons or whole-time members usually chair these committees.
The recommendations of advisory committees are not automatically enacted — SEBI conducts independent analysis and public consultations before implementing changes. However, committee recommendations carry significant weight and are almost always the starting point for major policy revisions. The process adds legitimacy to SEBI's regulatory actions and reduces the risk of unintended consequences in complex markets.