For the aforesaid purpose, only a Mutual Fund Distributor registered
with Association of Mutual Funds in India (AMFI) and who has been
permitted by the concerned recognized stock exchange, shall be eligible
to use recognized stock exchanges' infrastructure to purchase and
redeem mutual fund units directly from Mutual Fund / Assets Management
Such MF Distributors shall not handle payout and pay in of funds
as well as units on behalf of investors. The pay in will be directly
received by Indian Clearing Corporation Ltd (ICCL) and payout will
be directly made to investor's account. In the same manner, units
shall be credited and debited directly from the demat account of
the investors by the ICCL.
BSE launched StAR MF platform for IFAs (MFD Model) on March 6, 2014
in the presence of Shri S Raman, Whole Time Member, SEBI and Shri
S V Murali Dhar Rao, Executive Director, SEBI.
The platform is feature-rich and highly flexible - it has link-ups
with both depositories CDSL and NSDL, facility for one-time registration
of client to avoid extra key strokes for repeated buy/sell requests,
detailed easy-to-use information on various schemes being offered
through the platform and report management features.
BSE StAR MF is configured to accept both physical applications and
those in Demat form. Brokers of BSE who are registered ARN (AMFI
registration No.) holders are eligible to participate on this platform
as Mutual fund Intermediaries (MFIs). MFIs who enter applications
for investors who have chosen the Demat Option need not send any
physical documents to the RTA and will retain the applications in
their office along with all necessary annexures. However where investors
have opted for Physical Route, the MFIs would be required to send
the physical applications along with annexures to the nearest offices
of the RTA as per mutually agreed timelines.
Process-wise, on the first leg (collection of money for application
/units for redemption) the BSE and its Clearing Corporation - the
Indian clearing Corporation Limited (ICCL) will be responsible for
sending the same to the RTAs (registrar Transfer Agents). As far
as the reverse leg is concerned, i.e. sending units for purchases
and money for redemptions, to the investors, it will be handled
by the RTAs directly with the investors, thru physical account statements
or through depositories for Demat preference. The Exchange does
NOT offer any Settlement Guarantee as the respective AMC is the
counter-party for all transactions. However, the BSE would handle
the investor grievances, if any, related to the application process
(only MFI Model). Any grievance related to the units etc. would
have to be taken up by the investor with the RTA / respective AMC.
Pursuant to SEBI circular CIR/IMD/DF/17/2010 dated November 9, 2010,
the Exchange launched Phase 2 of the Mutual Funds i.e. the subscription
units / redemption proceeds will be routed through the BSE's Clearing
Corporation (ICCL) to the Brokers' Pool Accounts and then on to
the investors. This would be applicable to all transactions done
through the BSE StAR MF platform from the date of launch of Phase
2, i.e. from Friday, December 24, 2010 onwards.
The Exchange has since introduced the investor friendly Systematic
Investment Plan (SIP) facility (please see details in the Quick
Links Box) on December 10, 2010 and XSIP facility in July,2012 (please
see details in the Quick Links Box) which allows investors to invest
in Mutual Funds in small affordable instalments, in a regular, disciplined
and efficient manner.