SAT adjourns hearing in MF distributors case till Sep 2

MUMBAI: The Securities Appellate Tribunal (SAT) today deferred till next month the hearing on Financial Planning Supervisory Foundation's plea against in-principle approval given by regulator Sebi to IMFI for a self-regulatory organisation for mutual fund distributors.

SAT has asked Sebi to make its arguments on the case on September 2.

Financial Planning Supervisory Foundation (FPSF),promoted by Financial Planning Standards Board India, was one of the applicants for setting up this SRO. But, it was Institution for Mutual Fund Intermediaries (IMFI), which got the go-ahead earlier in February, last year, by the capital market regulator.

IMFI has been promoted by mutual fund industry body AMFI ( Association of Mutual Funds in India).

FPSF had approached the tribunal to challenge the market regulator's decision. In its appeal, FPSF has made Sebi and IMFI as respondents.

AMFI, the parent of IMFI, is a grouping of all fund houses in the country and it is also entrusted with the responsibility of distributor registrations.

To better monitor and regulate mutual fund distributors, Sebi on August 2012 approved a proposal to set up a regulatory body.

At present, distributors need to register with AMFI,which can cancel the registration for violation of a prescribed code of conduct or for any other malafide practice.