Explanation:

Only statements 1&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. 

• 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.

Hence option 2nd is correct.