A WEB-BASED ORDER ROUTING SYSTEM for Allotment & Redemption of Mutual Fund units with Facilities like Branch & Dealer Admin Creation and Assigning Client-level Transaction Limits.
SEBI vide its circular
CIR
/MRD/DSA/32/2013 dated 4th October, 2013 has allowed Mutual Fund
Distributors to use re-cognised stock exchanges' infrastructure to
purchase and redeem mutual fund units directly from Mutual Fund/Assets
Management Companies on behalf of their clients.
BSE Ltd offers its platform to Mutual Fund Distributors (MFDs) to
purchase and redeem mutual fund units on behalf of their clients.
For the aforesaid purpose, only a Mutual Fund Distributor registered
with Association of Mutual Funds in India (AMFI) and who has been
permitted by the concerned recognised stock exchange, shall be eligible
to use recognised stock exchanges' infrastructure to purchase and
redeem mutual fund units directly from Mutual Fund / Assets Management
Companies.
Such MF Distributors shall not handle payout and payin of funds as
well as units on behalf of investors. The payin will be directly received
by Indian Clearing Corporation Ltd (ICCL) and payout will be directly
made to investor's account. In the same manner, units shall be credited
and debited directly from the demat account of the investors by the
ICCL.
BSE launched its StAR MF platform on March 6, 2014 in the presence
of Shri S Raman, Whole Time Member, SEBI. The platform is available
for entering transactions between 9 a.m. to 3 p.m. on all working
days of the Exchange.
Advantages to investors / other stakeholders of using BSE StAR MF:
 |
Reduction of paper work: with respect to
application forms, cheques, collection statements, etc. especially
in Demat accounts.
Faster Execution: Allotment by way of Demat
credit and hence Investors can get Demat units on the next working
day.
|
|
|
 |
Reduction of paper work: with respect to
collection/submission of application forms & cheques, collection
statements, etc. especially in Demat accounts.
Faster Execution: Allotment by way of Demat
credit and hence Investors can get Demat units on the next working
day.
|
BSE StAR MF (BSE Limited Platform for Allotment & Redemption
of Mutual Fund Units): Process Flow
Process Flow: (Timelines)
| T
Day |
|
Order
capture for subscription and redemption on the BSE StAR
MF
- In case of L0/L1 schemes
|
9.00
am – 3.00 pm
9.00 am – 11.30 am
|
Fate
of pay in
- In case of L0 schemes
- In case of L1 schemes
|
1.00 pm
2.00 pm |
| Allocation
of units in case of L0 schemes |
4.00
pm |
| T+1
day |
|
| Fate
of pay in (Normal Schemes) |
9.30
am |
| ‘Payment
received' and ‘Payment not received' indication by MFDs
to ICCL |
10.30
am |
| Allotment
and Redemption information from RTA (Units) |
2.00
am |
| Credit
in the depository account of the investor |
End
of day process at Depository(6.00 pm) |
| Redemption
proceeds credit in investor bank account/cheque dispatch |
As
per TAT |
|
The Documentation and Checklist for Registration as 'Mutual Fund Distributor' in BSE StAR Mutual Fund Platform of BSE Limited is given below :
| 1 |
Registration with AMFI |
MFD should hold a valid AMFI Registration Number (ARN) |
| 2 |
MFD Fees |
Discontinued w.e.f 01.06.2015 |
| 3 |
Processing
Fees |
Rs. 2,000/- (plus GST as applicable) |
| 4 |
Documentation |
As per point 'A' below |
|
A] Documentation Checklist for Mutual Fund Distributors (MFDs) :
: