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 pay in of funds as well as units on behalf of investors. The pay in 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.
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 |
Should hold a valid ARN |
| 2 |
Minimum paid up Capital Requirement
(applicable for corporate applicants) |
Rs. 1 Lac |
| 3 |
Networth-Self Certified (one time requirement on registration) |
Individuals
Should have minimum tangible assets worth Rs. 1 lac
Other than individuals
Should have minimum networth of Rs. 1 lac on the basis of audited balance sheet of the latest financial year
|
| 4 |
MFD Fee |
Lifetime MFD Fee (non-refundable)
of Rs.16854/- (i.e. Rs.15000/- plus Service Tax @ 12.36%) |
| 5 |
One time Processing fee |
NIL |
| 6 |
Annual Fees |
NIL |
| 7 |
Documentation |
As per point 'A' below |
|
A] Documentation Checklist for Mutual Fund Distributors (MFDs) :
| 1 |
Application for Registration as the 'Mutual Fund Distributor' in the BSE StAR Mutual Fund |
Annexure 1 |
| 2 |
Applicant Undertaking on the Non- Judicial Stamp of Rs. 200/- (the value of the stamp paper should be Rs. 200/-) |
Annexure 2 |
| 3 |
Applicants Details & Additional documents |
Annexure 3 |
|