The hearing has been postponed to March 24.
The wait for the outcome of FPSB’s eleven months long tussle with SEBI on its decision to grant in-principle approval to Institution for Mutual Fund Intermediaries (IMFI) just got longer. Securities Appellate Tribunal (SAT) has once again adjourned the hearing on SRO case to March 24.
Almost a year back, Financial Planning Supervisory Foundation (FPSF) had filed the appeal with SAT on March 27, 2013. In its first hearing on April 23, SAT had directed SEBI not to grant a final approval to AMFI IMFI to set up SRO.
Financial Planning Supervisory Foundation (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 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 Institution for Mutual Fund Intermediaries (IMFI). IMFI received an in-principle approval to set up SRO on February 6, 2014.
Earlier, in its reply to Securities Appellate Tribunal (SAT), SEBI had said that it gave equal and fair opportunity to all the three applicants before taking a final decision. It requested SAT to dismiss the appeal.
FPSF had filed the appeal with SAT on March 27. The third contender was Organization of Financial Distributors (OFD) promoted by Financial Intermediaries Association of India (FIAI), an association of national distributors.
