In order to attract distributors to its platform, NSE has waived off registration fees.
NSE NMF II has done away with the requirement of keeping a refundable deposit of Rs.15,000 for distributors and Rs.25,000 for corporates with the platform and waived off the registration fee of Rs.2000 excluding taxes for distributors for three months i.e. June 11 to September 10.
Post this, the platform will charge registration fee of Rs.2000 excluding taxes. Also, there will be no refundable fees.
A circular issued by NSE circular in this regard says, “In our endeavour to facilitate MFDs to operate with an optimised cost structure. Exchange is pleased to announce waiver of refundable deposits remitted by MFDs with immediate effect. However, a one-time non-refundable membership registration fee of Rs.2000 (plus applicable taxes) will be applicable to avail membership of NMF II platform with effect from September 11, 2018. Further, in order to encourage MFDs to use digital platforms for mutual fund transactions, the aforementioned membership registration fee of Rs.2000 (plus applicable taxes) is waived off in the interim period from June 11, 2018 to September 10, 2018.”
Earlier, BSE Star MF conducted events to carry out spot registration of distributors at various locations. Recently, the company had organised such an event at Bengaluru and Mysuru. Over 200 distributors had registered with BSE Star MF by paying Rs.300 for admin charges.
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.