After BSE Star MF, NSE NMFII has decided to levy a transaction fee on its platform. In fact, NSE has reportedly approached a few AMCs with the proposal of levying such a fee, said three people familiar with the development.
Transaction platforms like NSE NMF II offer variety of services such as allocation and transfer of funds, reconciliation of fund, maintaining CMS, transaction reporting, e mandate and so on. Simply put, a platform can do a lot of operational work of AMCs and registrar and transfer agents apart from uploading transaction feeds and executing transaction. These platforms claim that they help AMCs save on cost and time.
In a note sent to Cafemutual, NSE NMF II said, “The hassle free transaction execution with adherence to all compliance requirements facilitated by digital platforms has taken Indian MF industry to a different level. Single payment for multiple investments across multiple AMCs has eased investing process. NMF II platform has gone a step ahead and is populating investor holdings on the platform. The platform enables only KYC compliant investors to transact and is validating investor information with KYC and validating bank details.”
BSE started the practice of levying transaction fee on AMCs on its BSE Star MF platform, which ranges between Rs.6 and Rs.30 per transaction, depending on the volume.
Currently, over 3000 distributors use NSE NMFII to execute transaction on mutual funds with an average monthly transaction volume of 9 lakh.
