Market regulator SEBI has given an in-principle approval to Institution of Mutual Fund’s Intermediaries (IMFI) to form self-regulatory organization on Friday.
AMFI promoted Institution of Mutual Funds Intermediaries (IMFI) has received an in-principle approval to form self-regulatory organization (SRO) from SEBI.
“We have received an in-principle approval from SEBI on Friday. We have six months to meet the criteria laid out by SEBI,” said H N Sinor, Chief Executive Officer, AMFI confirmed to Cafemutual.
According to SEBI rules, the SRO must be a company registered under section 25 of the Companies Act, 1956, and must have a minimum net worth of Rs 1 crore.
SEBI had invited applications for (SRO) in March 2013. The regulator had said there will be only one SRO to regulate mutual fund distributors.
There were two more applicants in the race for SRO - Organization of Financial Distributors (OFD) floated by Financial Intermediaries Association of India (FIAI) and Financial Planning Standards Board of India.
It may be recalled that U K Sinha in a public forum had voiced his support for AMFI to become the SRO of mutual fund distributors. AMFI had begun its search for the SRO CEO in April 2013 when it issued an advertisement inviting applications.
