Sebi mulls cancelling application process for SRO for MF distributors

Distributors say the selected body should fairly represent all members

The long-pending proposal of a self-regulating organisation (SRO) for mutual fund (MF) distributors got a shot in the arm on Monday as the Securities and Exchange Board of India (Sebi) proposed doing away with the application process and, instead, suggested a nomination process.

“This should expedite the process of granting SRO status to a suitable body,” said a senior MF official, requesting anonymity.

Through the nomination process, Sebi would grant SRO status to an entity after conducting due diligence.

In another key proposal made in the consultation pap­er, the regulator included ‘stock exchange’ in the definition of an SRO. The earlier