Jharkhand High Court has rejected a Ranchi distributor's plea for a stay order on SEBI’s commission disclosure circular.
In his judgement order, High Court Judge Rajesh Shankar said, “The present interlocutory application has been filed on behalf of the petitioner for staying the operation of the impugned circular dated 18.03.2016 till the adjudication of the writ petition. Having heard the learned counsel for the parties and considering the prayer made in the present writ petition, I am not inclined to pass interim order in this case. I.A. No. 7555 of 2016 is accordingly rejected.”
Earlier, Priyanka Maheshwari Director of Vedant Asset Advisors had filed a writ petition against SEBI’s circular on commission disclosure in Jharkhand High Court. The appeal was filed on September 29, 2016. Priyanka had also sought a stay order on commission disclosure in the Jharkhand High Court.
This had come after SEBI had asked fund houses to disclose commission structure of distributors in the half-yearly account statements in absolute terms. The circular has come into effect from October 1, 2016 and investors have already started receiving CAS.
However, the high court has upheld Priyanka’s plea for an early hearing of the writ petition. In fact, the court has said that it will hear the plea on the second week of December 2018.
The HC judge said, “The present interlocutory application has been filed for an early hearing of the present writ petition. It is jointly submitted by the learned counsel for the parties that the pleadings in this case are complete. In view of the said submission, put up this case under the heading “For Admission” in the 2nd week of December, 2018.”
