Registered investment advisors can use BSE's mutual fund platform for sale and purchase of MF units, on behalf of their clients, from tomorrow.
The exchange will not charge membership as well as one-time processing fee. Also, it will not charge annual fee.
For using the the exchange's mutual fund platform BSE StAR MF, the applicant should hold valid Sebi registration number, unless covered under the exempted category under (Investment Advisors) Regulations, 2013.
"The exchange is pleased to offer BSE StAR MF platform to Sebi registered investment advisors to purchase and redeem mutual fund units on behalf of their clients with effect from November 4, 2016," BSE had said in a circular.
The Securities and Exchange Board of India (Sebi), in October 2013, had permitted mutual fund distributors to transact in MF units using the stock exchange mechanism.
Prior to that, only brokers were allowed to utilise the exchange mechanism for redeeming and purchasing of mutual fund units.
Disclaimer: No Business Standard Journalist was involved in creation of this content
