Appeal over self regulator for MF distributors to be heard in Feb

Case adjourned so that full bench can hear the matter

The Securities Appellate Tribunal (SAT) has said that it will hear the case for creation of a self regulatory organisation (SRO) for distributors in a fortnight. 

The matter was slated for hearing on Tuesday but was postponed so that a full bench can hear the matter.

The Securities and Exchange Board of India (Sebi) had invited applications for the setting up of an SRO for distributors. It had later picked an organisation promoted by the Association of Mutual Funds In India (AMFI) as SRO.

But another applicant protested the move. The protest was from a body that financial planners had set up. It was pointed out that the manufacturer of a product would be regulating its distributors.

Those on the other side said that SRO board would have sufficient represention from Sebi and others to rule out such an issue.

 

The matter then came before SAT, which hears appeals against Sebi decisions. It will now be heard in two weeks time.