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2012 (6) TMI 66 - HIGH COURT OF DELHIPower of SEBI to issue circular - petitioners, all of whom are distributors and sell mutual funds to investors have challenged a policy circular laying down guidelines – Held that:- powers conferred upon SEBI vide section 11 of the Securities Exchange Board of India, Act, 1992, Section 11(1) of the Act is very widely worded and casts a duty on the Board to protect the interest of the investors; promote, develop and regulate the securities market by such measures as it deems it. circular has brought in transparency by prohibiting entry load for all mutual fund schemes. It means that the investor who subscribes Rs. 100 would be issued mutual fund units equivalent in value to Rs. 100, depending upon the prevailing unit rate of the unit of the fund. If the distributor so desires, he can negotiate with a customer and settle the commission which he would be receiving. those who render service to a large number of people would be able to cut down on overhead expenses and those who operate individually would have to incur higher expense to maintain their establishment. Being inherent to every business, it would not render the policy circular violative of any law. Appeal dismissed
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