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Paisabazaar, a subsidiary of Policybazaar, has been facing hiccups in migrating its customers to NSE's Mutual Fund Service System for backend mutual fund services instead of handling on its own.
As part of switching the services started over two years, Paisabazaar has to match its 80,000 customers with that of NSE.
In this process, some of the information of 478 customers did not match with that of the NSE. The company has now sent out letters to these customers to update details so that their services can be switched over, explained a company official.
Except for the 478 customers, all investors can still buy and sell mutual fund under direct plan without any hitch, he added.
Shutdown rumours denied
Direct plan distributors like Paisabazaar do not get any commission for selling mutual fund schemes unlike other registered distributors.
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Disbursements in 3 quarters grow 166%Though Paisabazaar has set a deadline of March 25 for the 478 customers to update their details, it will give them more time f so that they are switched on to the NSE service, said sources.
Denying market rumours that the financial services company is shutting down its mutual fund distribution business, Paisabazaar said as part of streamlining back-end operations and providing better customer experience in direct mutual fund investing, Paisabazaar has moved 99 per cent of customers and their mandates to NSE platform.
These customers can continue to invest, set SIPs, redeem through Paisabazaar platform seamlessly, it added.
Less than 0.5 per cent of customers, whose data on the platform was not updated, could not be migrated to the NSE platform.
"We are reaching out to these customers to decide the next course of action," it said.
Direct plan mutual fund distributors have been facing the heat due to rising cost and increasing compliance. With no revenue generation, direct plan distributors are trying to cut down on their operational cost by outsourcing operational procedures, said a distributor.
Most of the direct plan mutual fund distributors use the service provided without any revenue generation for pushing other products, he added.
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