In its response to the Cafemutual’s article on AMFI’s request to levy transaction fee from distributors, BSE has clarified that it will not levy any transaction charges on distributors for facilitating transactions on its Star MF platform.
Earlier, AMFI had sent a letter to BSE requesting it to reconsider its decision on levying transaction fee on AMCs. Instead, AMFI had said that such charges should be recovered from distributors as they are the one who use such platforms to save time and costs.
Responding to AMFI’s request, Omkeshwar Singh, Head – Mutual Funds, BSE has told Cafemutual that BSE Star MF Platform will neither charge any transaction fee/annual maintenance charge nor take any deposits from their distribution partners. “Exchange charge is service charge which is bilateral between BSE and AMCs. AMFI has no role to play in this,” said Singh.
In fact, BSE Star MF Platform has already raised bills on the respective AMCs based on the prescribed slab rates. With effect from December 1, 2016, BSE started 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.
