Financial Planning Supervisory Foundation (FPSF), promoted by FPSB, is contesting SEBI’s decision to grant in-principle approval to Institution for Mutual Fund Intermediaries (IMFI) as SRO.
Securities Appellate Tribunal (SAT) has once again adjourned the hearing on SRO case to December 09. The last hearing was on September 29.
Financial Planning Supervisory Foundation (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 appeal to SAT, FPSF has argued that the decision making process adopted by SEBI in granting in-principle approval to IMFI was not fair and just. It stated 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.
In its reply to Securities Appellate Tribunal (SAT), SEBI had said that it gave equal and fair opportunity to all three applicants before taking a final decision.
SEBI argued that since only one group was to given SRO status the provision to grant hearing before rejection may be applicable to sectors where there is scope for multiple SROs. It said that SEBI’s decision to grant in-principle approval to IMFI as SRO was transparent, fair, equitable and based on uniform treatment to all applicants. It requested SAT to dismiss the appeal.
FPSF had filed the appeal with SAT on March 27. In its first hearing on April 23, SAT had directed SEBI not to grant a final approval to AMFI promoted Institution for Mutual Fund Intermediaries (IMFI) to set up SRO.
