SEBI vide its Circular no. SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016 has allowed SEBI Registered Investment Advisors (RIAs) to use infrastructure of recognized stock exchanges to purchase and redeem mutual fund units directly from Mutual Fund/Asset Management Companies on behalf of their clients, including direct plans.
RIA's shall not handle pay-in and pay-out of funds as well as units on behalf of investors. The pay-in of funds for purchase of mutual fund units and redemption of units shall be made by the investors directly with the recognised Clearing Corporation. Similarly the pay-out of funds upon redemption and crediting of mutual fund units purchased will be directly made by the Clearing Corporation to investor's account.
RIA's operations will be restricted to Investors on-boarding and their order placement and at no point of time will they be in custody of funds or units of the investors. Order authentication, and settlement of funds and units will be directly between BSE / ICCL.
A SEBI Registered Investment Advisor shall require to register with the Exchange for availing the use of BSE Star MF Platform.
In this regard, Exchange has issued notice no. 20161024-33 on October 24, 2016 and notice no. 20161103-11 on November 03, 2016.
The guidelines for registration as RIAs on BSE StAR MF Platform is as follows:
The Documentation and Checklist for Registration as Registered Investment Advisors ' in BSE StAR Mutual Fund Platform of BSE Limited is given below :
| 1 |
Registration with SEBI |
Should hold valid SEBI Registration number |
| 2 |
Membership Fee |
Nil |
| 3 |
One time processing fees |
Nil |
| 4 |
Annual fees |
Nil |
| 5 |
Documentation |
As per point 'A' below |
|
A] Documentation Checklist for Registered Investment Advisors (RIA):