SEBI announces SRO rules for MF distributors

India Infoline News Service | Mumbai |

These regulations will come into force on the date of their notification in the Gazette of India.

Market regulator SEBI (Securities and Exchange Board of India) said that a single Self Regulatory Organisation (SRO) would be put in place for management of all mutual fund distributors.

"Provided further that the Board may, in case of distributors engaged by asset management companies of mutual funds, grant certificate of recognition to only one group or association making an application under
this regulation," SEBI said in a notification on Monday.

The regulator may grant an in-principle approval to the applicant, which shall be valid for 180 days. It can further extend the validity of the in-principle approval for a further 90 days.

The applicant should be a fit and proper person based on the criteria specified by SEBI. These regulations will come into force on the date of their notification in the Gazette of India.

SRO means an organisation of intermediaries which represents a particular segment of securities market and which is duly recognised by SEBI (Securities and Exchange Board of India) but excludes a stock exchange.

An SRO is responsible for investor protection and education of investors and ensures observance of securities laws by its members. The members of SRO have to follow a standard code of conduct. An SRO conducts inspection and audit of its members on regular basis through independent auditors.

An SRO must work in utmost good faith and must comply with the norms of corporate governance as applicable to listed companies.
 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.