Mumbai 4th August 2022: BSE StARMF is the largest aggregator for mutual fund transactions in India. BSE StARMF has been relied upon by brokers, distributors and Registered Investment Advisors for processing the mutual fund transactions of their clients for over 10 years.
Since July 1, 2022, the process for acceptance of orders from brokers has undergone a change, where funds and units from clients are now received directly by Indian Clearing Corporation Limited (“ICCL”), wholly owned subsidiary of BSE, and a SEBI recognised Clearing Corporation, for subscription and redemption transactions; similarly units and funds are also transferred to investors directly by ICCL; while earlier such transactions would happen bilaterally between ICCL and the brokers on a pooled basis. This new mechanism has been implemented to further improve investor protection in Indian securities market.
However, the revised process has also resulted into changes at exchange / clearing corporation, brokers, but more importantly at the various Payment Aggregators which the brokers had been using for servicing their clients.
During the month of July 2022, BSE StARMF processed approximately 1.84 Crore transactions. Usually, the transactions for which refunds are to be processed and money credited to the client account happens within 3 days. While processing the transactions and refunds, it was observed that incorrect / incomplete information was received from some of the Payment Aggregators which resulted into delay in processing some of the refund transactions. As and when the requisite information is being received, the refunds are being processed, and currently refunds of nearly 0.3% value of transactions is still under process.
We are working with the brokers and payment aggregators to finish processing those refund transactions, and we would like to reassure the investors that their money is safe with BSE / ICCL and that they would get the pending refunds immediately directly into client accounts on confirmation of mapping of bank account of client.
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.
Yatin Padia / Rahul Vyas / Shruti Nitesh
022 2272 8516 / 2272 8472 / 8108000974
Yatin.email@example.com/ Rahul.firstname.lastname@example.org/ email@example.com