MF News Jharkhand High Court hears commission disclosure appeal against SEBI

Jharkhand High Court hears commission disclosure appeal against SEBI

The next hearing is scheduled on November 8.

Ravi Samalad Oct 31, 2016

The next hearing is scheduled on November 8.

Ranchi based distributor Priyanka Maheshwari, Director of Vedant Asset Advisors has filed an appeal against SEBI’s commission disclosure circular in Jharkhand High Court. The appeal was filed on September 29 and the court has accepted the appeal.

The case was heard by the court last month and the next hearing is scheduled on November 8.

“The regulator has replied to our appeal. We have appealed to the court that disclosing commissions is not fair and it is against the interests of distributors. It is in violation of our constitutional right to do business,” says Lallit Tripathi, Founder of Vedant Asset Advisors.

Lallit says that disclosing commissions will not help investors take an informed decision and it can lead to passback practices.

In its circular dated September 20, SEBI had asked AMCs to disclose the absolute commissions paid to distributors in half-yearly consolidated account statements (CAS) sent to investors. The circular has come into effect from October 1 and investors have already started receiving CAS.

SEBI’s circular has also been challenged by United Forum, a federation of IFA Associations. The forum has filed an appeal with Securities Appellate Tribunal (SAT).

Like what you are reading?

Login to get instant access to this article and many other such articles on business development, success stories and industry updates.

Don't worry ... it's FREE!

Have a query or a doubt?
Need a clarification or more information on an issue?
Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

Latest Articles

Your bulletin for the day

Invesco MF settles case with SEBI on alleged violation

Prateek Agrawal is the new MD & CEO of Motilal Oswal MF

MF industry welcomes 24,000 new individual MFDs in FY24

Decoding the latest KYC status

‘Mid cap funds will continue to deliver healthy returns’

MFs increase exposure to private banks, capital goods and consumer goods

MF bulletin: The MF industry adds close to 7 lakh new investors in March

ICICI Prudential MF, SBI MF and HDFC MF are the biggest hybrid players

SBI MF, ICICI Prudential MF and HDFC MF: Top three in debt AUM

Click to clap

Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.

48 Comments

Akhilesh upadhyay · 7 years ago `

Thanks sir it is against the interest of both.

Rajeev Ranjan · 7 years ago `

Many many thanks for fighting with senior, it is necessary.

Seema Desai · 7 years ago `

Thanks, this is really necessary to work in small towns.

Prafulla · 7 years ago `

It is appreciated by Nagpur IFA club. We are with you Mr.Lalit.

Ravi · 7 years ago `

Mr.Lalit we all are with you.. Appreciable step taken by you in the interest of industry and community....

Ravi · 7 years ago `

Mr.Lalit we all are with you.. Appreciable step taken by you in the interest of industry and community....

Mohan Banka · 7 years ago `

Thank you
Very good work

kiran · 7 years ago `

its a very good move we all are...with u

D.Rewani. · 7 years ago `

thanks a lot for taking step . according to my opinion that AMCs should be the party because distributor's commi within the exp ratio so why amcs have not given the such point.

rajesh bhardwaj · 7 years ago `

i cant understand what kind of disclosure is this our commission in shows in rs and amc commission ( expense ratio ) shows in percentage %

MANOJ D FARKANDE · 7 years ago `

Thanks sir, its really good steps
If government want we as distrubutor show their commission on statement then follow this all sector as well as all india every sector.already it is a faction of amount that also we show.We really not understand.
if the govt.want this from the distributor then ask AMC also how much commission you pay to vendor for printing the material,stationary or any order mention that also in the statement.

Ashoke Kumar Basu · 7 years ago `

First of all I am expressing my hearty thanks to the Ranchi based "Vedant Asset Advisors" & a federation of IFA Association, "United Forum" for their historical movement agaist the "evil effect of monopolism". Personally I, as an IFA, certainly not against the system but when an IFA is bound to disclose his/her Income, although income declaration is mandatory to the concerned authority of the Govt. after the completion of every FY, then, why only Mutual Fund, why not other streams, like Insuance (Life + General), Company Fixed Deposits & all other financial products which are being treated as investments for the Public?????

rishi kumar choudhary · 7 years ago `

Thanks for taking a good step

Arvind · 7 years ago `

Thank you Mr Lalit for your effort to save our fraternity. We are with you whenever and wherever needed.

Narendra Mohan Gupta · 7 years ago `

Thanks Mr.Lalit fight against our rights we are with you

Rajesh Sharma · 7 years ago `

Thanks, for doing what you have done ... More such kind of effort needs to be taken so that in future from SEBI side no one way communication ... Like Don ka aadesh ...

RAVINDRA RATHI · 7 years ago

thanks a lot for taking step . according to my opinion that AMCs should be the party because distributor's commi within the exp ratio so why amcs have not given the such point.

vinayak Garkhedkar · 7 years ago `

Very good.But commission is disclosed in recent CAS. Is there stay order from high court? Can we request high court for stay?

Dweepesh · 7 years ago `

Thanks Mr.Lalit , well done and best luck

B.N.SINGH · 7 years ago `

THANKS, BUT WE SHOULD READY FOR UPPER COURT.

sukanta Bhattacharjee · 7 years ago `

Lalit Jee very Good step.u r the 1st person who open the eyes of IFS

Arvind · 7 years ago `

Lalitjee Thank you

premanshu Das · 7 years ago `

Transparency & Necked is not same

G.V.L.Vasanthakumari · 7 years ago `

Very nice step sir.

Yogesh · 7 years ago `

Thank you vary much lakit ji,, good job

HEMANT · 7 years ago `

Does the system of disclosing commision paid being followed by other service industry? Then why is Mr. Sinha & SEBI so ambitious in putting forward the disclosure? No Trade or Service Industry can perform in this manner, as they are providing an avenue to the investors to ask for kickbacks. The commssions paid are also not compareble with the other financial services..IFA fraternity garners business on behalf of the AMC's. Becasue of IFA's, MF industry could penetrate. Are they trying to kill the IFA's & promote only corporate culture? The Answer seems very evident - YES. Kindly consult your advocates & ask if other IFA's can be party to this applcation to make the case strong & prove our point.

tdevendra · 7 years ago

commendable step . in fact amfi should fight this with sebi tooth and nail against the retrograde step of the regulator. it is like robbing the peter and paying paul for the efforts and the gainful employment of the knowledge that the individual possess. no where in the world people resort to this step of personnel intervention. this is retrograde as the customer always demands for his pie and subverts the attention of his wealth building efforts. also it will a continous process of another sort ..... the efforts of ifa's is commendable and laudable for thwarting the volatility and the vacuum of fiis knocking of huge benefits due to accruals of indian citizens ;hard works and hard earning over lost few decades. instead of mitigating and improving and bringing semblance to fraternity of IFA'S , here the regulator business is to push to the wall the ifa fraternity.

B BALAJE · 7 years ago

COLLECTING FUNDS FROM INVESTOR IS NOT A EASY JOB .LIKE HIGHER OFFICIALS GETTING SALARY LAKHS AND LAKHS OF RUPEES .GOD ONLY KNOWS

More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.

POLL

MORE POLLS

AMCs can pay trail commission to the new distributor if investors initiate transfer of their assets. How will this impact you?

Help me get clients of other distributors who are underserved

Lead to poaching of clients

No significant effect on my business

EVENTS FORUMS