Capital markets regulator SEBI on Wednesday allowed investors to directly access the infrastructure of stock exchanges for purchasing and redeeming mutual fund units directly from mutual fund and asset management companies.
The move is aimed at further increasing the reach of the platform, SEBI said in a circular.
Before this, the regulator allowed investment advisors and mutual fund distributors to use stock exchanges for sale and purchase of mutual fund units in October 2016 and October 2013, respectively.
Prior to that, only brokers were allowed to utilise the exchange mechanism for transaction in mutual fund units.