New Delhi: Leading stock exchange BSE on Frdiay said it will introduce e-mandate facility on its mutual fund distribution platform from on Saturday, a move that will help in significantly reducing SIP registration cycle.
"This (e-mandate) is completely paperless framework that will reduce the time taken for mandate approval to 3 days from 10 to 35 days taken for paper based mandate approval," BSE said in a statement.
Currently, mutual fund distributors register paper-based mandates for their investors, which is time consuming, as it involves obtaining signature of an investor on the form and submission of physical format service centre for processing.
"This is a significant development. We are confident that BSE StAR MF has the potential to completely change the distribution framework of mutual fund industry by reducing the cost and increasing the predictability of processes," BSE Managing Director and CEO Ashishkumar Chauhan said.
Last month, National Stock Exchange had announced the introduction of e-mandate facility on its mutual fund platform.
To begin with, the e-mandate services will be available only to the consented schemes on the exchange's mutual fund distribution platform -- BSE StAR MF.