SEBI has directed stock exchange platforms like BSE Star MF and NSE NMF II to offer direct plans to investors. So far, exchange platforms used to offer direct plans to those investing through RIAs.
The move has bought parity between MF Utility and exchange platforms.
In a circular, SEBI said, “In order to increase the reach of this platform, it has been decided to allow investors to directly access infrastructure of the recognised stock exchanges to purchase and redeem mutual fund units directly from mutual funds.”
Swarup Mohanty, CEO, Mirae Asset believes that the move would make transactions easier. “I think it is just a natural progression to increase ease of transactions. Exchange platforms are not mutual fund distribution platforms who will attract new investors. I don’t think it would impact existing mutual fund distributors.”
Ganesh Ram, MF Head, BSE Star MF feels that the move will have no significant impact on anyone’s business. “This was expected. This will level the playing field in the industry.”
