An assessment report put in by a joint team of International Monetary Fund (IMF) and World Bank members has lauded SEBI saying that the regulatory and supervisory regime for securities market in India is well developed and largely in compliance with international standards. The report published by International Organisation of Securities Commissions- IOSCO under its Financial Sector Assessment Program – FSAP has acknowledged the comprehensive risk management framework prescribed by SEBI as one of the pillars of the Indian securities settlement system. It has further said that the Indian capital markets' regulator has successfully prevented occurrence of any major defaults in the last decade.Welcoming the report, SEBI has said that FSAP is very important as it highlights areas that may contribute toward further improvement of the system. It adds that since the last FSAP assessment in 2001, Indian securities market has undergone a sea-change but SEBI has built the reputation of a credible enforcement agency.SEBI has further welcomed the recommendations that the legal backing of the clearing and settlement process be improved by addressing the issues of finality and netting at the level of law. SEBI has acknowledged the suggestion that it should focus more on strengthening the supervision of securities market intermediaries including fund managers. Although SEBI has said that keeping an eye on the sheer number of the intermediaries operating in the securities market is challenging, SEBI does carry out theme-based inspections in respect of market intermediaries, mutual funds, depositories, stock exchanges, etc. In the respect of better auditing and accounting standards in the securities market, SEBI has said the Companies Act and Chartered Accountants Act provides a framework to maintain objectivity and integrity of accounting and audit. SEBI has said that apart from taking several steps to re-energise mutual fund industry, the regulator periodically checks the operations/activities of mutual funds and follows a risk-based approach for periodic inspections. The report has also asked SEBI to strengthen the stress-testing procedures of the central counterparties – CCPs and to improve the liquidity risk management.