SAT to hear plea against Sebi order on mutual fund distributors on Sept 29

The Securities and Appellant Tribunal (SAT) on Friday did not pronounce its verdict on a plea against in-principle approval given by the Securities and Exchange Board of India (Sebi) to Institute of Mutual Fund Intermediaries (Imfi) for a self-regulatory organisation (SRO) for mutual fund distributors and advisers.

SAT will again hear the case on September 29. Financial Planning Standards Board of India (FPSB), one of the three applicants, had approached SAT against Sebi’s February order, which had given in-principle approval to Imfi, promoted by the Association of Mutual Funds in India (Amfi), to act as an SRO. FPSB had contended the appointment of Imfi amounted to “conflict of interest”. And, that Imfi was incorporated as a company after it applied to Sebi.

Last month, Sebi had filed a detailed reply to SAT as well as the finance ministry, stating it hadn’t favoured any of the three applicants, while selecting the SRO for mutual fund schemes and it gave equal opportunity to all the interested parties.

The market watchdog has stated FPSB was raising technical issues and had failed to highlight how appointment of Imfi as an SRO would amount to conflict of interest.