Brokers can sell mutual fund products


"The stock brokers intending to extend the transaction in mutual funds through stock exchange mechanism shall be required to comply with the requirements specified in SEBI circular regarding passing the AMFI certification examination," SEBI said in a circular. However, the guidelines for the mutual fund brokers need to be followed by the agents, it said.

To keep a tab on this, SEBI said, the stock exchanges shall also monitor the compliance of the code of conduct specified in the market regulator's circular for empanelment of intermediaries by mutual funds.

Also, investor grievance mechanism for stock exchanges shall provide for investor grievance handling mechanism to the extent they relate to disputes between brokers and their client in case of mutual funds.

The mutual fund brokers would, in addition, also need to follow the existing guidelines for stamping and holding of dematirialised accounts with regard to mutual funds, the SEBI statement said.

The regulator has done this to use the infrastructure of stock exchanges that already exists for the secondary market transactions in over 1500 towns and cities, through over 200,000 stock exchange terminals can be used for facilitating transactions in mutual fund schemes. "The Stock Exchange mechanism would also extend the present convenience available to secondary market investors to mutual fund investors," SEBI said.

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