UTI Mutual Fund announces its tie up with National Stock Exchange (NSE) for providing a facility to its investors to transact in UTI Mutual Fund units through the National Stock Exchange terminals.
UTI Mutual Fund is the first mutual fund to provide this facility to investors.
A separate module has been provided by National Stock Exchange for entering purchase and redemption requests of UTI MF units to NSE brokers who are also ARN holders (Mutual Fund Distributors).
Terminals of NSE brokers will be the official point of acceptance and hence the date of acceptance of the transaction will be the date of entering the request on the terminal. Investors will also have the added advantage of obtaining the same day’s NAV (before 3 p.m.) at a large number of outlets i.e. more than 1500 towns and cities, including remote locations. The investors have an added advantage getting their units allotted in demat mode in addition to the existing physical mode as per their choice.
On the occasion, Mr U K Sinha, Chairman and Managing Director, UTI Asset Management Company Ltd. said, “The tie up with NSE will be an additional facility provided to investors and will work along with the existing distribution network. This tie up will enable UTI Mutual Fund to reach out to more number of investors across the country. National Stock Exchange has more than 1,50,000 terminals across 1500 towns and cities.”
“The arrangement with NSE will facilitate quicker settlement of transactions and provide a single window to demat holders for their investments.” Mr Sinha added
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Mr Ravi Narain, Managing Director and CEO of National Stock Exchange said, “Introduction of this new initiative will benefit the investors and help them to transact in MF schemes. The extensive reach and access to NSE terminals across regions will further bridge the gap between the MF and the people from the remotest part of our country desirous of investing in Mutual Funds. With introduction of MFSS, both investor and MF industry will gain from the efficiency and transparency brought in by technology and the systems.”
About UTI Mutual Fund
UTI Mutual Fund is a SEBI registered mutual fund whose Sponsors are State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India.
UTI Mutual Fund has assets under management (average) of Rs.76847.34 crore and investor accounts of over 9.79 million under its 75 domestic schemes (as of October 31, 2009).
UTI Mutual Fund has a wide distribution network, comprising of 138 UTI Financial Centers (UFCs), 340 Chief Representative offices, 110 Chief Agents and over 38000 AMFI certified Financial Advisors and reaches out to its investors through tie-ups with several Banks and Department of Post.
About National Stock Exchange
National Stock Exchange (NSE), established in the mid 1990s as a demutualised electronic exchange by leading Indian financial institutions, offers trading, clearing and settlement services in a range of products covering equity, debt and equity derivatives. It is India's largest exchange and ranks third globally by number of trades in the equities market. NSE has played an important role in helping reform the Indian securities market and in bringing about transparency, efficiency and market integrity.
NSE introduced trading in equity derivative products in 2000-01. In this short span of time, NSE has become the largest exchange in single stock futures and ranks fourth in index futures globally. Its flagship index, the NIFTY 50, is used extensively by investors in India and around the world to take exposure to the Indian equities market.
