In October 2013, SEBI allowed distributors to use stock exchange platforms to facilitate transactions in mutual funds to their clients. Both NSE and BSE have started providing limited purpose membership to MF distributors to use their MF platforms.
Since its launch, NSE claims that it has enrolled 600 distributors on its platform across India. To attract distributors, NSE has waived off annual fee of Rs. 2,500 if they register till September 2015. So far, 10 AMCs including IDFC, Kotak, L&T and Sundaram have joined this platform.
Are there any charges for getting limited purpose membership on this platform?
Individuals/partnership firms have to deposit a refundable fee of Rs. 15,000 while corporates have to cough up Rs. 25,000. From April 2015, NSE is charging Rs. 2,500 (waived off till September) as processing fee for registration and an annual renewal fee of Rs. 2,000. (This is in addition to the refundable deposit fee)
What is the procedure to onboard clients on the platform?
Distributors can register their clients by single entry or bulk upload facility. After you have registered your clients, an investor registration form is generated which needs to be signed by your clients and is required to be submitted to NSE service centre long with a cancelled cheque. This will allow your clients to transact on this platform. Here is the platform url : www.nsenmf.com
Are direct plans available on this platform?
No. Since it is a platform meant for distributors, direct plans are not available on this platform.
Will investors be allowed to access the NSE Mutual Fund (NMF) II platform?
Yes. You can grant online transactional rights to your clients at the time of registration. Also, your clients would get a consolidated view of all MF holdings on this platform (provided all distributors dealing with the client are registered on the platform). Your clients will be allotted unique identification number for transacting on this platform. Also, your clients will get a number of features like KYC status, portfolio statements, purchase, redeem (non-demat only), switch, and transaction status.
Can you have access to multiple login with data-base limiting to that particular EUIN / sub-broker?
You will have admin access and this will enable you to create user IDs for sub-broker and your employees.
What kinds of transactions are available on this platform?
Distributors can perform a number of transactions like subscription, redemption, SIP, SWP, STP, switch and other non-financial transactions on this platform. You can generate reports (transaction listing, End of day report, packing list, systematic registration report and ceasure report) and white label reports to investors.
What types of non-financial information updations are facilitated through the platform?
Non-financial transactions like change in name/address/PAN/broker/dividend payout option/redemption payout option/tax status, consolidation of folios, lien marked, lien removed, NFO trades reject and register nominee can be performed on this platform by the advisor. However, investors cannot perform non-financial transactions on this platform.
Are all transactions available in distributor login as well as investor login?
The distributor shall be able to execute purchase, redemption, start SIP, switch etc. through their login. Investors will be able to execute all transactions except for systematic transactions and redemption of units held in demat form through this platform.
Can only demat transactions be executed on the NMF II platform?
NMF II platform supports both type of transactions i.e. demat as well as non-demat.
Is any physical flow of paper involved to conclude transactions executed on NMF II platform?
For all transactions where the mode of acceptance of transaction is in person and in case of cheque transactions, you have to submit the transaction slip signed by the investor at service centre along with day’s packing list by 5 pm. However, in case of online transactions no physical document is required to be submitted by the investor or distributor.
What documents are required to be submitted in case of systematic registration transactions?
For systematic registration transactions, debit mandate form along with cancelled cheque (in case of new folios) and transaction slip is required to be submitted at service centre by 5.00 pm.
However, in case of SIP registration in existing folio, there is no requirement to submit cancelled cheque; submission of only a debit mandate form along with transaction slip will suffice.
What is the process of NAV applicability?
In case of transactions for less than Rs. 2 lakh, the NAV allotment is done on provisional basis which is finalized on clearance of funds. Further, in case of transactions for more than Rs. 2 lakh and liquid transactions the NAV allotment happens only on realization of funds.
In case of cheque transactions, in whose favour does the cheque need to be to drawn in?
In case of cheque transactions, the cheque should be drawn in favor of National Securities Clearing Corporation Ltd and made payable at Mumbai.
What are the different modes of making payment available to the investor?
NMF II supports payment of subscription amount by cheque, demand draft, online payment through RTGS/ NEFT, internet banking and debit card.
How many banks are enabled for online payment?
Currently, 52 banks are enabled for online payment; the number of banks will increase over a period of time.
In case of online payments what is the process?
In case of online payments through net banking distributors can enter the order on the platform on behalf of the client and forward payment link to their client to make payment through his login. Alternatively, your clients can initiate the transaction from their login and make payment from their net banking. In case of RTGS /NEFT transactions clients have to register NSCCL account in beneficiary list first to make the payment.
Whether investor can submit single cheque for multiple orders submitted either for the same mutual fund or across mutual funds?
Your clients can submit single cheque for multiple investments across AMCSs for normal transactions and similarly.
Is there any provision to receive mail back reports on the platform?
Yes, you will have to register the platform mail id with all the RTAs to receive the mail back reports. This will ensure auto update of your client’s portfolio data by the NMF II platform.
What kind of infrastructure would be required at the distributor end for accessing the NMF II?
NMF II is a web application and it can be accessed online from anywhere using a standard internet connection.
