Leading stock exchange BSE today said it has introduced two new services -- Systematic Transfer Plan and Systematic Withdrawal Plan -- on its mutual fund trading platform.
The exchange has a mutual fund trading platform -- BSE StAR MF. It became operational for all investors in December 2009.
"Further to the launch of various new developments and features, the exchange has enabled Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) on the BSE StAR MF platform," BSE said in a circular.
Mutual fund distributors will have to register STP for their clients on BSE StAR MF platform in non-demat mode and SWP in demat as well as non-demat form.
STP allows investor to give a mandate to the fund to periodically and systematically transfer a certain amount from one scheme to another while an SWP allow investors to take money out of a fund account according to a regular schedule that he chooses.
In the past few months, the exchange had introduced a host of new services on its mutual fund platform, including digital non-demat transactions, round-the-clock order acceptance and six-day order holding facility to help investors and distributors of such products.
From August 1, BSE has begun a multi-bank facility for distributors to register clients on its mutual fund platform. Earlier, mutual fund distributors can register only one bank account while registering the client on the BSE StAR MF platform.
The exchange introduced the multi-bank facility in UCC registration for non-demat transactions. This facility allows distributors to register up to five different bank accounts for their respective clients.
Noting that the technology set up at India Inx is similar
to one offered by it on the domestic bourse, Chauhan said that its trading platform has achieved a speed of 3-4 microseconds at the international exchange, bringing it in league with technology in rest of the world.
India International Exchange will offer T7 trading platform, currently used by BSE with speed of 6 microseconds.
Moreover, a new management has been put in place for the India International Exchange and is presently run by BSE officials.
"BSE has identified people to run all the departments. It has also hired people of Indian origin from overseas... currently it has a capacity of 70-100 people," Chauhan said.
Asked about sharing cost of operation, Chauhan said that currently BSE will undertake the cost on its own, however, once the exchange is stabilised and gain liquidity, it can explore opportunity to sell stake in it to other players.
The GIFT city will be the first IFSC of India where there would be no levy of securities transaction tax, commodities transaction tax, stamp duty, service tax and income tax. Only MAT (minimum alternate tax) will be applicable.
The international exchange would help Indian corporates raise equity from foreign investors by getting listed and provide companies incorporated outside India a platform to raise money in foreign currencies by the issuance and listing of their equity shares on the international exchange.
IFSC offers various benefits to market players including low cost of operations, low priced resources including land as compared to other countries like Singapore and Dubai.
