Description
SEBI's Appellate Authority dismissed an RTI appeal seeking clarification on operating as both AMFI registered Mutual Fund Distributor and SEBI registered Investment Advisor under different proprietorship firms.
Summary
SEBI’s Appellate Authority dismissed RTI Appeal No. 6465 of 2025 filed by Shreyans Shah, who sought clarification on whether one person can operate as both an AMFI registered Mutual Fund Distributor under one proprietorship firm and a SEBI registered Investment Advisor under a different proprietorship firm. The appeal was dismissed as the query sought opinion/clarification rather than factual information as defined under the RTI Act.
Key Points
- Appeal filed on June 30, 2025 against CPIO SEBI Mumbai’s response dated June 26, 2025
- Original RTI application dated June 5, 2025 sought business structure guidance
- SEBI clarified that Mutual Fund Distributors are regulated by AMFI, not SEBI
- Appellate Authority ruled that seeking clarification/opinion does not constitute ‘information’ under RTI Act Section 2(f)
- No specific grounds mentioned by appellant for filing the appeal
Regulatory Changes
No regulatory changes introduced. This is a procedural ruling on RTI Act interpretation.
Compliance Requirements
No new compliance requirements. The ruling reinforces that:
- RTI applications must seek factual information, not opinions or clarifications
- CPIOs are not obligated to provide interpretations or compile information as per applicant’s requirements
- Mutual Fund Distributor regulation remains under AMFI’s purview
Important Dates
- June 5, 2025: Original RTI application filed
- June 26, 2025: CPIO response provided
- June 30, 2025: Appeal filed (Reg. No. SEBIH/A/E/25/00162)
- July 28, 2025: Appeal dismissed by Appellate Authority
Impact Assessment
Minimal market impact as this is a procedural RTI matter. The ruling provides clarity on RTI Act scope regarding opinion-seeking queries but does not affect business operations or regulatory framework for mutual fund distributors or investment advisors.
Impact Justification
Procedural RTI matter with no regulatory changes or market impact