With travel restrictions in place, MFDs using digital transaction platform are finding it difficult to obtain wet signature of existing and new clients on the account opening forms (AOFs).
AOF is one time account opening form which captures basic details of clients like name, email id bank details and so on. While the form can be filled online, it has to be printed to obtain wet signature of clients for authentication.
Last year, considering the nationwide lockdown, RTAs gave extension for some time to MFDs using online platform like BSE Star MF to obtain wet signature of clients. Later, with the relaxation of lockdown restrictions, RTAs started asking MFDs to obtain wet signature on AOP from clients who have opened account during lockdown as well as new clients.
Since both NSE NMF II and MFU have completely online on-boarding process in place, MFDs using BSE Star MF platform have been facing this temporary issue.
These MFDs are now hoping for extension till BSE Star MF develops a completely online process to onboard new clients.
In fact, the Karnataka Association of Mutual Fund Advisors (KAMFA) has requested RTAs to extend the deadline to submit wet signature of clients on AOP. In a communication sent to RTAs, KAMFA President Tejas GV said, “We wish to bring to your notice that re-introduction of uploading of AOF for non-demat transactions on BSE Star MF Platform would highly inconvenience the mutual fund distribution community in view of the prevailing conditions due to Covid-19," KAMFA president Tejas G V said in a letter to RTAs.
In the letter, Tejas urged RTAs to defer their decision on obtaining wet signature from clients on AOP for some more time. “If possible AOF validation can be done through OTP verification by client, which will make things easier and faster and also completely digital going forward. Please make the changes on a prospective basis and not on a retrospective basis,” added Tejas.
BSE StAR MF said it is in the process of developing a completely digital tool but it will take a few more months to become functional. Uploading AOF remains compulsory as of now, according to Kiran Nandavadekar, Head-MF business, BSE StAR MF. "MFDs who have not uploaded might face issues in further transactions," he said.
A CAMS spokesperson said distributors can complete the process either through AOF or electronic log on their platform.
