BSE launches eKYC services on StAR MF platform to provide seamless experience of onboarding investors
BSE to start eKYC for stock brokers and other approved intermediaries in the near future
Mumbai, May 26th 2020: BSE Star MF, in its constant endeavour to simplify and provide end-to-end value-based services to the Mutual Fund Industry, is delighted to announce the launch of BSE eKYC services (Aadhaar & Video KYC based Investor Onboarding Solution) w.e.f. today, May 26, 2020.
Some of the key features of the BSE eKYC solution on BSE StAR MF platform are highlighted as follows:
• User friendly web and mobile interface for different participants of MF Industry
• Digital verification of KYC documents
• Integration with KRA systems
• Real-time approval in case of successful verification of all IDs and documents
• The said solution is compatible with various web browsers and operating systems
This eKYC services, will eliminate the current challenges of onboarding a new investor.
BSE also plans to provide the eKYC services to stock brokers and the other approved intermediaries in the near future for which it will issue APIs for stock brokers and other intermediaries to connect their IT systems to BSE’s E KYC system.
Commenting about the newly launched service, Shri. Ganesh Ram, Business Head – Mutual Funds, BSE said “BSE StAR MF is the 1st MF platform to enable eKYC, which will go a long way in improving the experience of onboarding investors in a seamless manner. It will simplify the KYC process and improve the TAT for completing it. With the superior systems, it will bring in more operational efficiency by reducing error prone and time-consuming human efforts. Consequently, reduce the investor acquisition cost.”
BSE StAR MF contributed Rs. 56,038 crores (Subscription: 1,41,473 crores minus Redemption: 85,435 crores) as Net Equity Inflow during FY 2019-20, which is 66% of the MF Industry Net Equity Inflow which is Rs. 83,781 crores. In April 2020, BSE StAR MF contributed 61% in net equity inflow i.e Rs.3,806 cr out of the industry’s total of Rs.6,212 cr.
BSE StAR MF processed over 63.17 lakh transactions amounting to Rs. 37,200 crore, in the month of April 2020. Overall, the platform achieved 5.75 crore transactions in the financial year 2019-2020. BSE StAR MF has added approx 14 lakhs Unique PAN during March 2020 & April 2020.
Some of the Key Highlights of BSE Stat MF are:
• Monthly Turnover for April, 2020 was Rs.37,200 Cr., compared to Rs.14,466 Cr. on April 2019, a striking growth of 157 %.
• Monthly Turnover for April, 2020 was Rs.37,200 Cr., compared to Rs.41,187 Cr. on March 2020 a decline by 9%.
• Annual Turnover during FY 19-20 was Rs. 2,02,552 Cr.
• Monthly number of Transactions for April 2020 was 63.17 lakhs as compared to 70.36 lakhs for March 2020.
• Monthly number of Transactions for April 2020 was 63.17 lakhs has rapidly increased by 48% as compared to 42.61 lakhs for April, 2019.
• Annual Transactions have significantly increased by 61% as compared to last year. It has processed 5.75 crore transactions (Apr’19 to Mar ‘20) in comparison to 3.59 crore (Apr ‘18 to Mar ‘19).
SIP Book Size:
• Total StAR MF’s SIP book size is 39.54 lakh amounting to Rs. 1,180.09 crore as on April 2020.
• The platform registered 2.54 lakh new SIPs amounting to Rs. 60.09 crore in April 2020.
• The platform registered 2.84 lakh new SIPs amounting to Rs. 82 crore in March 2020.
• 1/3rd of every SIP in the industry in April 2020 is registered through BSE StAR MF platform.
BSE StAR contributed 35% in registration of new SIP to the MF industry. BSE StAR MF registered 2.54 lakh new SIPs out of 7.26 lakh new SIPs registered by MF industry.
• Distributor count has seen multi-fold increase to 57,064 (as on April 2020) from 23,796 (as on April 2019).
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualized entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE also has a dedicated MF distribution platform BSE StAR MF which is India Largest Mutual Funds Distribution Infrastructure. On October 1, 2018, BSE launched commodity derivatives trading in Gold, Silver, Copper, Oman Crude Oil, Guar Gum, Guar Seeds & Turmeric.
BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
BSE has set up an Investor Protection Fund (IPF) on July 10, 1986 to meet the claims of investors against defaulter Members, in accordance with the Guidelines issued by the Ministry of Finance, Government of India. BSE Investor Protection Fund is responsible for creating Capital markets related awareness among the investor community in India.
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