Stock exchanges are awaiting SEBI guidelines for empanelling mutual fund distributors.
Asia’s oldest stock exchange, BSE has proposed to SEBI to create an exclusive membership for mutual fund distributors. Since this license is for mutual funds only, BSE has proposed to keep the license fee at Rs 10,000.
Currently only members having a full-fledged license are allowed to sell mutual funds through the BSE Star MF platform.
“We have proposed a more affordable sum Rs 10000 for those who cannot become BSE members due to huge capital requirement. They can get a limited membership of mutual fund distribution on BSE. Direct schemes of mutual funds can also be sold through BSE for which distributors can charge a fee from their clients,” said Managing Director and CEO, Ashish Chauhan at a mutual funds awards event recently.
BSE had started its BSE StAR MF platform in 2009. NSE also runs a similar platform called Mutual Fund Service System (MFSS).
Finance Minister P Chidambaram in his recent budget speech had allowed mutual fund distributors to become stock exchange members.
Also read: MF distributors not keen to take up stock exchange membership
