In a circular issued today, SEBI has allowed RIAs to initiate transactions on stock exchange platforms for their clients.
So far, only MF distributors, stock brokers and clearing members were allowed to transact through stock exchange platforms.
“In order to broad base the reach of this platform, it has been decided to allow SEBI Registered Investment Advisors (RIAs) to use infrastructure of the recognized stock exchanges to purchase and redeem mutual fund units directly from mutual funds on behalf of their clients, including direct plans,” states the circular.
This indicates that exchange platforms could start offering direct plans for RIAs.
A senior official from BSE Star MF said that they are planning to launch a separate platform for RIAs. “BSE Star MFD will continue to be a B2B platform and we will not allow direct plan on this platform. We will come out with a platform for RIAs called BSE Star MF RIA in which we will only offer direct plans.”
RIAs are required to take permission from recognized stock exchanges to transact through their MF platforms.
