As you are aware, the Securities Exchange Board of India (SEBI) vide Notice SEBI/IMD/CIR No. 11/ 183204/2009 dated November 13, 2009 has issued guidelines for facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure.
Understanding the need for extending the present convenience available to secondary market investors, to the mutual fund investors, the Exchange proposes to launch the Bombay Stock Exchange Platform for Allotment and Redemption of Mutual Fund units (BSE StAR MF). In order to participate in the BSE StAR MF, trading members will be required to comply with the documentation requirements as specified in this Notice.
All trading members of the Exchange who are registered with the Association of Mutual Funds of India (AMFI) as Mutual Fund Advisors and who have entered into agreements with the specific Asset Management Company (AMC) of a Mutual Fund are eligible to participate in the BSE StAR MF. For this purpose, trading members shall have to register with the Exchange as Mutual Fund Intermediaries (MFIs) by submitting an Undertaking as per the format specified in Annexure 2.
MFIs shall abide by the operating instructions and stipulations laid down in this Notice and the Notices issued from time to time with regard to BSE StAR MF by the Exchange. They would also be required to satisfy such other requirements as prescribed by SEBI, Association of Mutual Funds of India (AMFI) or any other regulatory authority for market intermediaries in the Mutual Fund industry.
Further, the MFIs shall ensure that the investors desirous of participating in the BSE StAR MF register with the MFI as a client by submitting a letter as per the format specified in Annexure 3 to this Notice. All clients of the MFI shall undertake to abide by the operating instructions and stipulations laid down in this Notice and other notices issued from time to time by the Exchange relating to the BSE StAR MF platform.
Separate guidelines for settlement procedures, etc. is being issued shortly.
The BSE StAR MF platform shall commence operations from Friday, December 4, 2009.
List of Annexures enclosed with the Notice is given below:-
|
Annexure no. |
Particulars |
|
1 |
Operating Instructions for BSE StAR MF |
|
2 |
Format of Letter & Undertaking to be given by MFI for availing the BSE StAR MF and Detailed Guidelines relating to the BSE StAR MF platform |
|
3 |
Letter to be provided by the investor to the MFI for registering as a client for BSE StAR MF and detailed terms & conditions for the Clients |
|
4 |
Procedure for taking registeration as MFI for the BSE StAR MF platform |
|
5 |
SEBI Notice SEBI/IMD/CIR No. 11/ 183204/2009 dated November 13, 2009 |
|
6 |
Suggested formats for Order Confirmation Note and Transaction Confirmation Note |
In case of any clarifications, members may please contact their respective Relationship Managers or the following officials:
|
Query |
Name of official |
Hotline no. |
|
General |
Mr. Suhel Plasar |
8436 |
|
Settlement related |
Mr. Sanjay Narwankar |
8113 |
|
Settlement related |
Mr. Surendra Rashinkar |
8306 |
|
General |
Ms. Aliya Sayyed |
8844 |
For Bombay Stock Exchange Limited
Khushro Bulsara
Head – Market Operations
December 2, 2009. |