SEBI to appoint SRO for distributors soon

So now we all know that SEBI and AMFI are hands in gloves which is an open truth. What I fail to understand is why supreme court only quashed the decision and not punish SEBI officials who did this ghastly act by just approving IMFI? That would have set an example for the other officials to do the right thing and be afraid of doing something wrong. I felt that was a clear case of corruption. Now when it comes to SRO, if no MFD is a part of SRO then how can it be justified? SRO means self regulatory organisation and if there is no "Self" in it then how can it be justified? AMFI only has Mutual fund officials as their members and directors then why in our case it has to be third party who doesn't and will not even try to understand our problems and requirements? It is high time we form our own SRO and not let these third parties who will be buyest and act in the favour of their own interests to make maximum profits for themselves. My request is let us all unite and form SRO

In Supreme Court or SAT the representation should have been that as both NSE & BSE are SROs but not represented by other Broker bodies or consortium of companies listed in the Exchange. In case of AMFI becoming SRO, there should be a clear demarcation of AMCs from Sponsor Banks. In case of mis sell by Banks the SRO should be able to levy a penalty of forfeiture of Trail commission for say two years, removing distribution head and all guilty officials from Bank payroll with names given in their website etc. The same practice should be applicable for cadres of Distributors. Any AMC promoting any Club membership, Foreign trips for all cadres of Distributors should first file such proposal with SRO for approval. SRO should direct the AMCs to make qualification points based on total number of new clients acquired during the contest period( 50% should be unique PAN), Goal Planning of the clients in SIP with written consent of both Client & Distributor for long term, No multiple tickets to family members with RAN to avoid splitting of business, maximum no of tours per Distributor in a year. This will create level playing fields for distributors and avoid excessive churning / concentration of Assets or hoarding, forming a cartel. The AMC officials promoting such practice should be penalised. SRO can also make it mandatory based on last drawn salary every employee of AMCs should have 5-20% of average salary be parked compulsorily in schemesof their choice in the AMC they work. In case of retirement / job change other than suspended due to fraud / misconduct the folios should be live for at least two years. These will give depth in the industry on a sustainable basis.

Surprising to see these comments. I know someone in AMFI. The fact is that FPSF had malicious intentions in getting SRO and wanted to squeeze distributor community to implement requirement of passing some exams of FPSF after they become SRO, thereby earning tons of money. AMFI was not to become an SRO of distributors. They had a different company established called IMFI for this purpose. In that company even distributors' representatives by way of Associations like FIFA will be inducted as Directors of IMFI. Then it will be purely self regulated. It was a proper and good step to have IMFI as the regulator rather than people like FPSF as regulator with vested interest. Surprisingly the courts ruled in their favour, that may be because Justice Srikrishna is Chairing FPSF..... Otherwise, we the IFAs would have had strong representation in SEBI too through IMFI.....

As long as the bureaucracy is in the control of Mutual Fund Industry, their powers can be made known to the outside world, only if there are sufficient No. of subordinates are working under them. It can be staff, officers, peons, drivers or whatever names they can give them.

The Regulator is not bothered about encouraging employment to the unemployed people of this country, who are earnestly involved in the expansion of Mutual Fund Industry. The role of the regulator has been in discouraging these unemployed people from entering MF arena. Damages have already been done with minute to minute changes in the set up and administrative changes in the rules and regulations. During the 25 odd years of its existence the Regulatory team has brought in 100-200 changes already and the Team is ever ready to bring in more and more such changes. If these changes are brought out regularly. then only the common man feel that there is an agency called "SEBI" in existence.

Neither they are bothered about the survival of the unemployed Financial advisers or their families or the real growth of this Industry. The Employment generations are only for the politicians to answer, as the promises have been given by the politicians only and not by bureaucrats, Let them answer and the bureaucrats are supposed to get regular salaries, the fatter that much will make them happier.

How much of self certification the bureaucracy need to submit? Without these documentation only the Salary packets are continuously bulging, and the make the hard earned nominal amounts of this IFAs are being made to be thinner and thinner.

Can we change it? Yes, we can do it, if there is a willingness is shown by the politicians, who only can pressurise the bureaucracy.

Let Us Wait!!!!!!

I AM VERY GLAD THAT SEBI RECRUIT SRO FOR MUTUAL FUND DISTRIBUTOR.DISTRIBUTORS ARE SUFERROR FOR SEBI CLOW BACK RULES.I DONT LIKE THIS RULES,SO I COMPLAIN AGAINST SEBI
CAIRMAN AGAINST THIS CLOW BACK RULES.FOR THIS I HAVE GIVEN SEVERELS MAIL TO SEBI CHAIRMAN BUT ITS GREAT REGRET TO SAY SEBI DIDNT ANSWER MY MAIL.FOR THIS I HAVE TO GIVE A COMPLAIN MINISTRY OF COMERCE AGAINST SEBI CHAIRMAN.

SRO will work only if there is unity amongst MF distributors- the need/ priorities of individual Advisors and corporate entity is entirely different hence self regulation has to be different. Even amongst individual IFAs the various unregistered associations work as a cotrie with a purpose just to get freebies and foreign jaunts. This is not in the interest of distributors. I have not seen any association raising voices in organized manner against GST /input tax credit or Distributors not entitled to advice their clients which sound ridiculous as many AMC arrange exhorbitant training sessions at different locales addressed by doyens. If they are not supposed to advice what is the need to train. The Direct business advantages can not be spelt out in crude way multiplying just returns over a period without highlighting the value of advice/ timely execution/ planning and identifying priorities.It is just like co listed become brokerage house themselves and promote their shares.Is there any law against AMC employee selling it's own schemes without giving a complete picture as he has vested interest to sell his own schemes.Who is checking that and which agency govern that. Recently some of the big co have stopped trail of Distributors in case of MF investors who are non compliant..The companies have not sent any notice to investor and put their investments on hold- instead punish Distributors.Is it fair?