Individuals have to pay a refundable fee of Rs. 15000 to get membership on NSE’s Mutual Fund Service System (MFSS).
National Stock Exchange (NSE) has started offering membership on its Mutual Fund Service System (MFSS) platform to mutual fund distributors.
“NSE has now proposed to offer limited purpose membership to all the mutual fund distributors to use the exchange infrastructure to purchase and redeem mutual fund units on behalf of their clients,” said a circular issued by NSE on December 19.
Distributors have to shell out a onetime processing fee of Rs. 2500 along with a refundable deposit of Rs.15000 (for individuals and others) while corporates have to pay Rs. 25000. In addition, members have to pay an annual renewal fee of Rs. 2000.
NSE will make certain modifications in the existing platform to accommodate mutual fund distributors.
NSE’s rival BSE had opened membership on its StAR MF platform in October. BSE claims that it has already registered 300 distributors on its platform.
NSE had launched MFSS on November 30, 2009, around the same time when BSE launched its BSE StAR MF platform.
Stock
exchange platforms allow mutual fund investors to transact in a wide variety of
schemes at one place. So far, only stock brokers and clearing members were
allowed to transact via stock exchange platforms.
Distributors whom Cafemutual spoke to said that they would join stock exchange platforms if they get access to client feeds.
