(7)Upon registration with the SEC, a NSE becomes a Self-Regulatory Organisation (‘SRO’). Self-regulation of market intermediaries through a system of SROs is one of the core elements of the U.S regulatory framework. SROs are primarily responsible for establishing the rules under which their members conduct business and for monitoring the ways their members conduct business. In their capacity as SROs, NSEs monitor and enforce compliance by their members and persons associated with their members with the Exchange Act, the rules and regulations thereunder and with their own rules. In the case of non-compliance of members with NSEs rules, NSEs are required to address any potential violations of the market’s rules or the federal securities laws by its members. They are also required to inform the SEC of significant infringements.