BSE mulls facility for MF distributors to access StarMF

BSE mulls facility for MF distributors to access StarMF

BSE mulls facility for MF distributors to access StarMF

The Exchange is discussing the proposal with market regulator Securities and Exchange Board of India and hopes to launch the new facility over the next two to three months, BSE General Manager, Market Operations, Khushro A Bulsara said.

"There are around 70,000 distributors in the country and even if at least 10,000 of them access this facility, that will be a very encouraging sign," Bulsara said.

Distributors generally access the MF platform through registrar and transfer agents (RTAs). The new facility will enable them place orders directly from their own terminals through a browser-based system, which will be fast.

This will help to enhance the efficiency of transactions by faster realisation, the official said.

BSE launched its MF transaction platform-BSE Star MF in December on the heels of rival NSE launching its own facility.

As on date, 14 found houses have joined the BSE StarMF platform to offer their schemes.

BSE is also readying to launch its mobile phone platform to facilitate mutual fund transactions and is currently testing the facility.

The facility, which is expected to be launched soon, will allow brokers to place orders from their mobile phones on the BSE StartMF platform adding more convenience to the transaction process.

Moving ahead, the exchange is planning to offer the mobile transaction facility to investors as well.

"We have seen a very good response from the investors to transact through the BSE StarMF platform. Over 90 per cent of the orders are from demat holders, many of them already trade in the secondary market," Bulsara said.

BSE is currently undertaking a series of investor education programmes to encourage more investors use the Star MF platform, he said.

MF Houses, currently offering their schemes through BSE StarMF platform, include Reliance Mutual Fund, Tata, Birla Sun Life, Fidelity, SBI, HDFC, ICICI Prudential, UTI and DBS Cholamandalam amongst others.

The BSE, which has a reach to over 400 cities through 40,000 terminals, has utilised the infrastructure of Indian Clearing Corporation for this venture.

The Exchange has designated NSDL and CDSL as depositories to facilitate the new initiative.

DH Newsletter Privacy Policy Get top news in your inbox daily
Comments (+)