Comments
The Bombay Stock Exchange will introduce e-mandate facility on its mutual fund distribution platform from tomorrow, a move that will help in significantly reducing the SIP registration cycle.
“This (e-mandate) is a completely paperless framework that will reduce the time taken for mandate approval to 3 days from 10 to 35 days taken for paper-based mandate approval,” BSE said in a statement today.
Currently, mutual fund distributors register paper-based mandates for their investors, which is time-consuming, as it involves obtaining signature of an investor on the form and submission of physical form at the service centre for processing.
“This is a significant development. We are confident that BSE StAR MF has the potential to completely change the distribution framework of mutual fund industry by reducing the cost and increasing the predictability of processes,” BSE Managing Director and CEO Ashishkumar Chauhan said.
Last month, National Stock Exchange had announced the introduction of e-mandate facility on its mutual fund platform. To begin with, the e-mandate services will be available only to the consented schemes on the exchange’s mutual fund distribution platform -- BSE StAR MF. The exchange has implemented e-mandates through HSBC and ICICI (as sponsor banks) along with Digio as e-sign service provider.
e-mandate, available for individuals with a single mode of holding, is an Aadhaar-based functionality. Accordingly, registration of mobile number with the Unique Identification Authority of India (UIDAI) is mandatory for e-signing of mandate. Currently, the maximum limit for e-mandate is Rs 1 lakh.
“BSE has always been sensitive to the requirement of investors and its mutual funds members and understands the importance of SIPs. Therefore, it is introducing the 4th option to start systematic investment plan through BSE StAR MF,” the exchange noted.
Currently BSE StAR MF already has 3 options to start SIPs -- SIP - payment link-based, ISIP - biller-based and XSIP - NACH Mandate. In 2017, it had processed 1.3 crore transactions worth more than Rs 1 lakh crore.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.