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  • MF News SC allows SEBI to start afresh on SRO for MF distributors

    SC allows SEBI to start afresh on SRO for MF distributors

    SEBI is confident of receiving more applications this time.
    Nishant Patnaik Dec 20, 2017

    Supreme Court has allowed SEBI to start afresh the appointment on self regulatory organisation (SRO) of mutual fund distributors.

    In the last hearing on October 13, the apex court has said, “It has   been   stated   that   the   selection   process   had started   in   March,   2013   and   with   the   passage   of time   many   more   persons/entities   have   become eligible   and   the   respondent.  No.1-SEBI,   who   had initiated the selection process, is confident that if   it   is  permitted   to   start   the   process   afresh more   applications   will   be   received,   thereby broadening the choice of selection.”

    “Having   regard   to   the   above   statement   of   the   application   and   the   public interest   involved,   we   allow   prayer   (a)   as   made   in the application extracted above,” said the court.

    SRO or self regulatory organisation for mutual fund distributors is expected to be responsible for micro-regulations of its members (MF distributors and spread awareness about mutual funds among people, educate and train distributors and conduct screening test for them.

    In March 2014, Financial Planning Supervisory Foundation (FPSF) had filed the appeal with Securities Appellate Tribunal (SAT) against SEBI for its decision to grant permission to AMFI to launch a SRO for mutual fund distributors. After many hearings, SAT had quashed SEBI’s decision to grant in-principle approval to IMFI to act as an SRO for the mutual fund distributors. SAT has asked the market regulator to start the selection procedure afresh in September 2015.

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    5 Comments
    Prashant · 6 years ago `
    I don't understand why we need SRO in the first place. Also SRO has to be within the distributor community and not a tbird party who doesn't understand the work of a distributor. Secondly again court has given SEBI go ahead on appointment of SRO which will be completely wrong because we all k ow what SEBI did last time when it co.es to SRO. It clearly proves that SEBI is hands in gloves with AMFI. Also FPSB is an institute who teaches about CFP which is not at all related to distributors or distribution so it doesn't make any sense. If SRO is so important it should be a group of distributors and IFAs only otherwise it will be a malicious plot to.destroy us. Shame shame shame
    Integrated Money Matters Pvt. Ltd. · 6 years ago `
    There is urgent need to devise standardized application and transaction formats e.g. KYC across all fund houses to facilitate easy transactional access.
    Raju · 6 years ago
    Standard application and transaction format is already available through MFU. Use MFU forms. No need to run after different AMCs to get their forms. I use MFU and it is convenient. Now I do not store any form of any AMC. Only MFU forms which are common for all AMCs
    Reply
    Integrated Money Matters Pvt. Ltd. · 6 years ago `
    SRO (Self Regulatory Organization) has to be from among the D I S T R I B U T O R S. SEBI and AMFI have their separate roles and should have no say insofar as SRO is concerned. SRO should send well thought out suggestions to promote mutual fund business e.g. standardized application, transaction and service request formats across all fund houses.
    Raju · 6 years ago
    Standard application and transaction format is already available through MFU. Use MFU forms. No need to run after different AMCs to get their forms. I use MFU and it is convenient. Now I do not store any form of any AMC. Only MFU forms which are common for all AMCs. WONDER WHY YOU ARE NOT USING THOSE FORMS IF YOU ARE SO KEEN ON STANDARDISED FORM. In fact, with MFU forms you can transact schemes of different AMCs in one form and also can be submitted either in CAMS or KARVY, irrespective of the Mutual Fund.
    Reply
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