Sebi Chairman Chandrakant Bhave inaugurated the BSE’s mutual fund online trading platform here this morning which will enable investors through 40,000 terminals from over 400 cities across the country.
To begin with, the BSE StAR MF has received confirmation from more than 20 mutual fund-houses to participate and a total of 103 schemes from seven funds, will be available from the day one. Other fund houses are expected to start operations in next few days. The Exchange mechanism would extend the present convenience to secondary market investors to mutual fund investors, while the platform would enable exchange’s members to use its existing infrastructure for transaction in MF schemes. At the same time, all existing MF investors can also use this electronic platform.
Essential vehicle
Commenting at the launch, BSE Managing Director & CEO Madhu Kannan said, “Mutual Funds have become an essential vehicle for investors to channelise their savings. Given breadth of our nationwide network, we are positive that investors will find value in this platform. The BSE’s new StAR MF platform will offer a low cost inclusive network to all Mutual Funds and intermediaries in the Mutual Fund industry.”
BSE is the second stock exchange after National Stock Exchange (NSE) to start the online trading of MF. BSE has designated two depositories, National Securities Depository (NSDL) and Central Depository Services (India), to facilitate the new venture. NSE had started with NSDL as depository but CDSL also would join the NSE MF platform early next week, it is learnt.
Like NSE, with a view to attract investors BSE will also waive all charges till April 2010. It will also introduce an investor awareness programme for common investors, said Kannan. Further, BSE framework will be available to any grievances of the investor relating to the faulty or wrong submission of purchase or sell transactions by the brokers to the exchange.
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