Mutual fund transaction platforms such as BSE Star MF and NSE NMF II seek to attract distributors by either reducing the registration fee or waiving it off completely for mutual fund advisors.
While BSE Star MF will hold an event to carry out spot registration of distributors at various locations, NSE NMF II is likely to waive off registration fee for some time across the board, said three sources privy to the development.
A BSE official requesting anonymity has confirmed that the company will hold an event to carry out spot registration of distributors on May 23 and May 24 at Mysuru and Bengaluru, respectively. The transaction platform will conduct sport registration events in other cities very soon, he added.
Distributors can register with BSE Star MF free of cost; however, they will have to pay Rs.300 for admin charges. Only ARN holders of Mysuru and Bengaluru will get free registration. They need to carry copies of their PAN card, Aadhaar card and ARN. Currently, BSE Star MF charges Rs.2,000 excluding GST as one-time registration fee.
Similarly, NSE NMF II will waive off the registration fee completely for some time. “We are awaiting board approval. Once it gets through, we will waive of the registration fees for some time,” said NSE NMF II official requesting anonymity. After this, the company may charge nearly Rs.2,000 for registration. Currently, NSE NMFII charges Rs.15,000 from individual distributors and Rs.25,000 from corporate distributors, which is refundable on termination of contract.
This has come after both the platforms have started to levy transaction charges on AMCs. Both the platforms levy transaction fee on AMCs, which ranges between Rs.6 and Rs.30 per transaction, depending on the volume.
Transaction platforms like BSE Star MF and 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.
