UTI to be first on NSE mutual fund platform

Published on Sun, Nov 29, 2009 at 13:10 | Updated at Sun, Nov 29, 2009 at 13:31 | Source : Business Line

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Around 30 of the 100 schemes of `will be listed on the new NSE Mutual Fund platform, which is set for a Monday launch.

The liquid schemes will not be included among them, said a top UTI official.

For the fund industry, it will be a new technology-driven initiative when UTI MF lists its schemes on Monday on NSE's new platform – the Mutual Fund Service System (MFSS).

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In November 2000 a similar initiative by the Association of Mutual Funds in India made it possible for Indian funds to declare their NAVs on a common platform.

BSE to join soon.

Around 10 mutual funds are expected to join NSE's platform within a week's time, an NSE official said. BSE too is readying a similar platform for launch, a BSE spokesperson said, without giving further details.

The new transaction platform allows investors who have demat accounts to transact in mutual funds online by logging on to their broker's telecom network, which will be linked to NSE's MFSS.

Those who do not have demat accounts will have to apply to their respective mutual funds for generation of a personal identification number (PIN), a user ID and password; this route will also facilitate online transactions, without the broker coming into the picture.

Such investors will have to provide their bank account details along with their PAN and fund folio numbers to get their PIN.

Transactions would be processed on the business day on which the investor's funds are credited to the mutual fund's bank account. Units will be allotted at the previous day's NAV for orders received up to 3 pm.

In addition to online subscription and redemption, investors can apply for new fund offers and additional subscription in various schemes.

The facility will also enable switching of units from one scheme, plan or option to another.

No entry load will be charged for direct applications that are not routed through a broker or distributor, but are forwarded online to mutual fund houses through their online transaction facility, the Web site of UTIMF said.

There is no clarity on levy of brokerage and securities transaction tax. NSE officials declined to comment on this matter.

(Taken from Business Line)

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