India's leading Stock Exchange BSE is introducing 'Paperless SIP' (Systematic Investment Plan) that would allow mutual fund investors to make transactions through various modes of payments.
The additional feature of BSE's Mutual Fund platform – STAR MF – would allow Mutual Fund distributors to register SIPs for their clients, who can pay SIP amounts through modes, said BSE in a circular. Source: ET
But, the new facility is only available for non-dematerialised transactions and for a SIP installment of amount more than Rs. 2,00,000. Moreover, Mutual Fund distributors have the option to register only Exchange SIP(XSIP) for their clients which allow for ECS (Electronic clearing Service) payment route.
Under the Paperless SIP facility, the investors would receive an e-mail for all the payment modes, including direct pay, nodal account, one-time mandate and cheque, after the SIP has been registered.
According to sources, BSE StAR Mutual Fund has become the largest Mutual Fund distributor platform in India with more than 4 lakh Sips per month. Furthermore, as per the exchange's evaluation, BSE StAR Mutual Fund accounts for more than 8 per cent transaction taking place in Indian MF houses.
Dating back to 2014, capital market regulator Sebi had allowed mutual fund distributors to use the stock exchange platform for non-demat transactions as well for sale or redemption of these financial products.
The move was aimed at allowing mutual fund distributors to leverage the stock exchange platforms to expand their reach. Source: India Today
