Bombay Stock Exchange’s (BSE) StAR MF platform seems to have gained acceptance among distributors. The exchange has registered 300 distributors after it opened membership for intermediaries in October, claims a BSE official. Out of the 300 distributors, 100 are IFAs.
National distributors and platforms like IIFL Wealth Management, Aditya Birla Money Mart, iFAST Financial have also taken BSE StAR MF membership, said the official.
The upgraded version of BSE StAR MF platform is expected to be launched on January 14, 2014. BSE is making some changes in the back end of the platform since the settlement would be now between the investor and the exchange. Earlier, the settlement took place between the stock exchange member and the exchange. The old platform will continue to function.
Earlier, only members of BSE were permitted to transact through this platform. The high costs associated with taking stock exchange membership deterred distributors, especially IFAs, from joining the platform.
BSE is offering this lifetime membership for a non-refundable fee of Rs. 15000.
“We are evaluating it and we’ll considering joining the platform after all issues are addressed. We may join if it is beneficial for our clients,” said Atul Khanna, Chief Technology Officer, Next Advisors.
A deterrent for a few advisors that Cafemutual spoke to was the additional costs related to demat account for the investor.
The platform currently does not provide switch facility which
means that an investor has to redeem and then reinvest if he/she wishes to
switch to another scheme. A BSE official said that they are working on
introducing this facility.
