BSE to start multi-bank facility for MF client registration
Currently, mutual fund distributors can register only one bank account while registering the client on the BSE StAR MF Platform. “Now, the exchange would be introducing multibank facility in UCC (Unique Client Code) registration for non-demat transactions. This facility allows MFDs (mutual fund distributors) to register up to five different bank accounts for their respective clients,” BSE said in a circular.
The implementation date would be informed shortly, it added. In March, BSE had announced a host of new services on its mutual fund platform, BSE StAR MF, including digital non-demat transactions, round the clock order acceptance and six-day order holding facility to help investors and distributors of such products.
In 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.