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2015 (10) TMI 324 - AT - Companies LawChallenge the decision of SEBI for setting up of SRO for distributers of mutual fund products Petitioner contends that the Respondent was not eligible to apply as the same is not a Company registered under Section 25 of the Companies Act as on the cut-off date which is mandatory as per the SRO Regulations - Petitioner further holds that as per Regulation 10 of the SRO Regulations it should have got an opportunity of being heard before rejecting the application Further contended by the Petitioner that SEBI was biased in favour of Respondent even before inviting applications for being recognized as SRO Respondent contends that the said Company was holding license under Section 25(1) of the Companies Act on the date of submitting the application and registration was obtained by the appellant within the time stipulated under regulation 6 Respondent further holds that opportunity of hearing under regulation 10 is relatable to the stage of rejecting the application of an applicant to whom in-principle approval is granted under regulation 4A. Held That:- Since the Respondent held license under Section 25(1) of the 1956 Act on the date of submitting the application under regulation 3 the same was eligible to apply and therefore SEBI was justified in entertaining the application submitted by Respondent First contention held in favour of the Respondent. SEBI has failed to comply with the requirements of regulation 10, the same is quashed and set aside the impugned decision of SEBI - Directed SEBI to select an applicant afresh for grant of certificate of recognition in respect of distributors of mutual fund products Court did not go onto the merits of the third contention held by the Petitioner Petition disposed of as such Second contention decided in favour of the Petitioner.
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