The next hearing is scheduled on November 8.
Ranchi based distributor Priyanka Maheshwari, Director of Vedant Asset Advisors has filed an appeal against SEBI’s commission disclosure circular in Jharkhand High Court. The appeal was filed on September 29 and the court has accepted the appeal.
The case was heard by the court last month and the next hearing is scheduled on November 8.
“The regulator has replied to our appeal. We have appealed to the court that disclosing commissions is not fair and it is against the interests of distributors. It is in violation of our constitutional right to do business,” says Lallit Tripathi, Founder of Vedant Asset Advisors.
Lallit says that disclosing commissions will not help investors take an informed decision and it can lead to passback practices.
In its circular dated September 20, SEBI had asked AMCs to disclose the absolute commissions paid to distributors in half-yearly consolidated account statements (CAS) sent to investors. The circular has come into effect from October 1 and investors have already started receiving CAS.
SEBI’s circular has also been challenged by United Forum, a federation of IFA Associations. The forum has filed an appeal with Securities Appellate Tribunal (SAT).
