 "Stock broker looking at screen outside the Bombay Stock Exchange")
Asia's oldest stock exchange BSE on Tuesday said lump-sum transactions initiated through a paperless SIP (Systematic Investment Plan) facility for mutual fund investors will be discontinued till further notice.
"...Lump-sum transactions initiated through iSIP mandate shall be discontinued till further notice," BSE said in a circular.
BSE, in October, introduced iSIP to help the investors to set up a form of SIP without an involvement of any documentation.
The new feature was available through the BSE StAR Mutual Fund (MF) platform allow mutual fund distributors to register SIPs for their clients who can pay SIP amounts through various modes including net banking.
SIP is an investment vehicle that allows investors to invest in small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.
BSE Star MF is the largest MF distributor platform in India with more than 4 lakh SIPs per month. On many occasions, the platform has exceeded 1 lakh orders per day.
