Members unhappy with SRO plan

The Securities and Exchange Board of India's (Sebi) plan to form a unified self-regulatory organisation has not gone well with its constituents.

The Association of National Stock Exchange Members of India (ANMI) prefers a separate self-regulatory organisation (SRO) for mutual funds and merchant bankers.

ANMI has proposed the market regulator should allow them to form an independent SRO consisting only of market participants including brokers and depository participants.

Speaking to Business Standard Vijay Singhania, president, ANMI said, "We have appealed to Sebi not to form a unified body including ANMI, Association of Mutual Funds and representatives of merchant bankers and others as we will not be knowing much about their functions and the issues faced by them."

"They have agreed to consider our proposal regarding this issue," added Singhania.

Earlier this month, Sebi chairman M Damodaran had said that it was working on the idea of a unified SRO rather than separate SROs for mutual funds, stock brokers and merchant bankers as this would be a better option.

The SRO would deal with issues such as members inspection,disciplinary action,arbitration between client and broker etc.

The ANMI has also decided to modify its charter to include members of other exchanges such as BSE in their fold and rechristen itself as 'Association of National Exchange Members of India'.

After this development its current membership base will increase from 800 to 1500. They have already approached the registrar of companies with this regard and awaiting its approval.

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SINGING DIFFERENT TUNES

The SRO would deal with issues such as inspection of members, disciplinary action,arbitration between client and broker etc

ANMI has proposed the market regulator to allow them to form an independent SRO consisting only of market participants including brokers and depository participants

Sebi had said that it was working on the idea of a unified SRO rather than separate SROs for MFs, sto ck brokers and merchant bankers