Leading bourse National Stock Exchange of India (NSE) on Thursday introduced a "E-mandate" facility on its Mutual Fund platform to reduce the time taken for SIP (Systematic Investment Plan) registration.
According to the NSE, the E-mandate facility would help "to significantly reduce the SIP registration cycle to just two to three days, as compared to two to three weeks".
Currently, members or MF distributors register paper based mandates for their investors which is time consuming as it involves obtaining signature of an investor on the form and submission of physical form at service centre for processing.
Commenting on the new initiative, NSE's MD and CEO Vikram Limaye said: "NSE has taken a step towards 'digital India' by announcing an e-mandate facility on its Mutual Fund platform. Implementation of E-mandates is a very significant step towards digitisation of transactions in Mutual Funds."
"The objective is to offer simple and hassle free alternative to the members or MF distributors in form of e-mandate wherein the members or MF distributors can register mandate of an investor online, which will be digitally signed based on Aadhar based OTP validation.''
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--IANS
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