NSE to introduce new MF Service System from Nov 30

 This follows capital market regulator SEBI issuing guidelines for facilitating transactions in mutual fund schemes through the stock exchange infrastructure, NSE said in a circular here.

Trading members, in order to participate in the New MFSS, will be required to comply with the documentation requirements as per a specified format, the circular said.

"All trading members of the exchange registered with the Association of Mutual Funds of India (AMFI) as mutual fund advisors and who have signed up with the specific asset management company (AMC) for a mutual fund are eligible to participate in the New MFSS," the circular said.

For this purpose, trading members would have to register with NSE as participants, it added.

Participants would have to abide by the operating guidelines, terms and conditions of the NSE with regard to the New MFSS and such other requirements as prescribed by SEBI, AMFI or any other regulatory authority for market intermediaries in the business of mutual fund units, it said.

Further, the participants shall ensure that the investors desirous of participating in the New MFSS register with the participant as a client have to submit the letter as per a specified format, it said.

"All clients shall undertake to abide by the operating guidelines and terms and conditions of this circular and the circulars issued from time to time by NSE with regard to the New MFSS," the Exchange said.

The existing Mutual Fund Scheme, introduced in 2000, will be discontinued and substituted by the New MFSS, the circular said.