BSE to launch multi-bank facility for MF distributors on Aug 1

BSE to launch multi-bank facility for MF distributors on Aug 1

Asia’s oldest bourse BSE on Thursday said it will introduce a multi-bank facility for distributors to register clients on the exchange’s mutual fund platform from August 1.

Mutual fund distributors can register only one bank account while registering the client on the BSE StAR MF Platform.

“Multi-bank facility in UCC (Unique Client Code) registration will be going live with effect from August 1, 2016,” BSE said in a circular.

The exchange would introduce the multi-bank facility in UCC registration for non-demat transactions. This facility allows mutual fund distributors to register up to five different bank accounts for their respective clients.

While registering multiple accounts, the distributors will have to register the client type as “physical”, and specify any one bank account as “default”.

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 markets regulator Sebi had allowed MF 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 platform to expand their reach.