SEBI has sent its reply to FPSB on its decision to grant in-principle approval to IMFI as SRO.
Securities & Appellate Tribunal (SAT) will hear FPSB promoted Financial Planning Supervisory Foundation’s appeal against SEBI on SRO on August 08.
FPSF, a company promoted by FPSB had appealed against SEBI’s decision to grant in-principle approval to AMFI promoted Institution for Mutual Fund Intermediaries (IMFI) as SRO. IMFI received an in-principle approval to set up SRO on February 6, 2014. The third contender was Organization of Financial Distributors (OFD) promoted by Financial Intermediaries Association of India (FIAI), an association of national distributors.
In its earlier hearing on April 23, SAT had asked SEBI to send its reply on the matter by July 01. Sources close to the development said that SEBI has sent its reply to SAT and FPSB.
SAT had directed SEBI not to grant a final approval to AMFI promoted Institution for Mutual Fund Intermediaries (IMFI) to set up SRO.
FPSF in its appeal has argued that the decision making process adopted by SEBI in granting in-principle approval to IMFI was not fair and just. It states that neither did SEBI conduct any formal interview to determine the most suitable applicant for SRO nor did it offer any substantive reasoning regarding its decision to grant in-principle approval to act as SRO to IMFI.
