BSE, Asia's oldest bourse, today said registered investment advisors can use its mutual fund platform for purchase and redeem MF units on behalf of their clients from November 4.
The exchange said that guidelines for registration and operations for investment advisors on the platform will be issued shortly.
The move comes after the markets regulator Sebi allowed investment advisors to use the infrastructure of the stock exchanges for sale and purchase of mutual fund units, a move that will broaden the reach of the platform.
They can utilise the exchanges infrastructure for purchase and sale of mutual fund units directly from asset management companies on behalf of their clients.
"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 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 the redeeming and purchasing of mutual fund units.
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