Online trading platform for MFs likely by March

The common online trading platform for mutual funds may be ready for investors by March, said the Chairman of the Association of Mutual Funds in India (AMFI), AP Kurian.

"The platform has been chosen, and subject to regulatory clearances we should be able to offer the common online platform hopefully by March," he said, speaking on the sidelines of a seminar organised by SWIFT.

Using this platform brokers will be able to buy and sell mutual funds through the stock exchanges. The common platform for the mutual funds will allow retail investors to trade, switch over and compare schemes online through a single window.

The platform will increase the reach of mutual funds, improve efficiency, reduce costs and easily provide facilities to investors and distributors, said Mr Kurian. The AMFI Chairman also said that a committee of the association has suggested two common online trading platforms for the mutual funds.

"This is just a recommendation made by the committee. No decision has been taken. We are just examining it; let us wait for the outcome. Instead of one platform, two will be available, so participants can choose any one of them."

The committee is headed by the CMO of UTI Mutual Fund, Mr Jaideep Bhattacharya. Kurian said though the mutual fund industry is growing at an aggregate of 40 per cent a year, the outflows from the equity funds in the last three months are a cause of concern.

The asset base of the MF industry was Rs 7.51 lakh crore as on October 31. The equity schemes fetched poor inflows in the October.

Diversification Plans

Speaking at the seminar, James Shapiro, Head of Market Development at BSE, said the bourse is planning to diversify into a multi-asset exchange.

"We have asked for SEBI's permission to begin monthly contracts on index and single stock futures and options," said Mr Shapiro.

To offset NSE's competition, he said, the BSE is looking at having monthly derivatives contracts. "It doesn't make sense to get into the same category where the National Stock Exchange already has a strong presence. One has to innovate and the regulator has been very encouraging." As of now only NSE offers monthly derivative products.

The BSE plans to diversify into trading in debt, derivative products, interest rate derivatives, foreign exchange derivatives and also foray into power trading, he added.

Taken from Business Line