Nearly three months after issuing a consultation paper on appointment of Self Regulatory Organisation (SRO) for MF advisors and distributors, SEBI has said that it would require some more time to finalize it.
At a recent press conference held in Mumbai, Ajay Tyagi, Chairman, SEBI, said “SRO was discussed (in SEBI’s board meet on Thursday), but some more analysis needs to be done.”
The market regulator refrained from committing to a deadline on appointment of SRO for MF advisors and distributors.
On April 1 this year, the market regulator had issued a consultation paper on appointment of SRO for mutual fund distributors and RIAs. SEBI had said that a first level regulator like SRO is required to have an oversight on growing number of IFAs and RIAs.
SEBI had said that there is a need to bring a certain level of consistency in the relationships between distributors and AMCs. In this context, SRO is expected to play a key role.
In its consultation paper, SEBI had also said that SRO’s role would be disciplinary, developmental, regulatory and grievance redressal & dispute resolution in nature. The SRO will also have the power to suspend and expel members.
Here is a link to the detailed account of the consultation paper on appointment of SRO for MF advisors and distributors.
