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Amid reports of BSE StarMF platform experiencing glitches, leading stock exchange BSE on Thursday said it is working with the brokers and payment aggregators to finish processing the refund of investors.
Assuring investors, BSE said that their money is safe with the exchange and that they would get the pending refunds immediately directly into client accounts.
The statement comes amid reports of investors facing delays in their MF transaction processing, redemptions and refunds. Some investors have pending refunds stuck for many days.
New transaction mechanism
Since July 1, the process for acceptance of orders from brokers has undergone a change, wherein funds and units from clients are now received directly by Indian Clearing Corporation Limited (ICCL), a wholly-owned subsidiary of BSE, for subscription and redemption transactions. Similarly, units and funds are also transferred to investors directly by ICCL.
Earlier, such transactions used to happen bilaterally between ICCL and the brokers on a pooled basis.
This new mechanism has been implemented to comply with capital markets regulator Sebi's new framework aimed at further improving investor protection in the securities market.
However, the revised process has also resulted into changes at exchange or clearing corporation, brokers, but more importantly at the various payment aggregators' platforms, which the brokers had been using for servicing their clients.
Refund process
In a statement, BSE said that usually the transactions for which refunds are to be processed and money credited to the client account happens within three days.
While processing the transactions and refunds, it was observed that incorrect or incomplete information was received from some of the payment aggregators, which resulted into delay in processing some of the refund transactions, the exchange said.
As and when the requisite information is being received, the refunds are being processed, and currently refunds of nearly 0.3 per cent value of transactions is still under process, it added.
"We are working with the brokers and payment aggregators to finish processing those refund transactions and we would like to reassure the investors that their money is safe with BSE/ICCL and that they would get the pending refunds immediately directly into client accounts on confirmation of mapping of bank account of client," BSE said.
In July, BSE StARMF processed about 1.84 crore transactions.
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