The platform is currently at the testing stage.
The National Stock Exchange (NSE) has launched a pilot version of its platform called MF Simplified for mutual fund distributors. The platform will be launched within a month. In fact, the company has started demonstrating the product feature to distributors, said sources privy to the development.
The platform will provide investors a common account number which can be used to invest across AMCs. Sources said that around eight AMCs have signed up with the platform. This common number will enable distributors and their clients to submit multiple requests across schemes of various fund houses using a single application.
Also, the platform will provide online transaction facility to investors as well as distributors. Distributors can get direct membership on this platform and transact directly on the stock exchange platform under their own ARNs. This means that MF distributors will get commissions directly from AMCs.
To get membership on NSE’s new platform, distributors have to shell out a onetime processing fee of Rs. 2,500 along with a refundable deposit of Rs.15,000 (for individuals and others) while corporates have to pay Rs. 25,000, said sources. In addition, members have to pay an annual renewal fee of Rs. 2,000.
This is the second platform being designed especially for IFAs. Its old platform ‘Mutual Fund Service System (MFSS)’ will continue to function.
NSE has tied up with CAMS to develop this platform, sources added.
