The Supreme Court on Tuesday directed M/s SBI Funds Management Pvt. Ltd. to secure the amount meant for Distribution Commission to be paid to the Mutual Fund Distributors.
A special bench comprising of Hon’ble Mr. Justice Abdul Nazeer and Sanjeev Khanna while hearing an application filed by Foundation of Independent Financial Advisors, a no profit organization to safeguard the interest of it’s members and sough a direction to disburse due and payable distribution commission to it’s members.
While dealing with the application, the Supreme Court observed that the distribution commission was accrued in favour of its members before the winding-up proceedings in six schemes of Franklin Templeton Trustee Services Pvt. Ltd. Further, the same was also transferred to the liquidator appointed by the Hon’ble Court, M/s SBI Funds Management Pvt. Ltd.
Responding to a query from the Hon’ble Court, the Ld. Counsel appearing for M/s SBI Funds Management Pvt. Ltd. stated that so far no specific amount of the Distribution Commission is earmarked for members of the applicant prior to disbursing the money to the investors of the six schemes. On a query from the Court, the Counsel also submitted that a total Distribution Commission accrued in this regard is about Rs.77 Crores. Foundation of Independent Financial Advisors submitted that about Rs.19 Crores out of that sum is due and payable to approximately 1400 of its members which is part of about Rs.77 Crores.
The Court issued notice in the Application filed by Foundation of Independent Financial Advisors and directed Securities and Exchange Board of India to file its response to the same. The Hon’ble Court also observed that since issue of Distribution Commission of the members of Foundation of Independent Financial Advisors is yet to be decided, therefore, no further disbursement shall take place without prior permission of the Court.
Foundation of Independent Financial Advisors was represented by Mr. Jayant Bhushan, Sr. Advocate led by a team of Mr. Simranjeet Singh, Partner along with Mr. Gautam Talukdar and Mr. Jatin Khatri from Athena Legal.
This article was shared with Prittle Prattle News as a Press Release.
