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Madhabi Puri Buch the Chairperson of SEBI shared her views on the long pending Self-Regulatory Organization (SRO) for mutual fund distributors at the recently held Federation of Indian Chambers of Commerce and Industry (FICCI) event – 19th Annual Capital Markets Conference 2022.
Madhabi said, “SEBI’s view is that mutual funds distributors are agents of mutual funds. They are not independent entities that SEBI needs to/should regulate.”
Madhabi further added, “SEBI will regulate mutual funds and it is up to them to ensure good behaviour by MFDs.”
The SEBI board had earlier approved the proposal to set up SRO to regulate MFDs and had also issued a consultation paper on the appointment of SRO. However, there haven’t been any recent developments on the subject matter.
The SRO would have been responsible for micro-regulations of MFDs, spreading mutual fund awareness, educating and training distributors and conducting screening tests.
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