BSE extends deadline to accept ECS mandate on its MF platform

Leading stock exchange BSE today said the deadline for accepting Electronic Clearing Services (ECS) mandate on its mutual fund platform has been extended till May 31.
ECS allows transfer of funds electronically and it is generally used to give a mandate to banks for honouring periodic claims from the entities concerned.
"We have received notification from RBI with regard to extension of window for acceptance of ECS mandate till May 31, 2016. Hence the acceptance of ECS mandate shall be discontinued with effect from June 1, 2016," BSE said in a circular.
Earlier the deadline was till April 30.
In March, BSE had announced a host of new services on its mutual fund platform, BSE StAR MF, including digital non-demat transactions, round the clock order acceptance and six-day order holding facility to help investors and distributors of such products.

In 2014, capital market regulator Sebi had allowed mutual fund distributors to use the stock exchange platform for non-demat transactions as well for sale or redemption of these financial products.
The move was aimed at allowing mutual fund distributors to leverage the stock exchange platforms to expand their reach.