SEBI gives direct access to stock exchanges for mutual fund investments


By Ritu,

Capital Sands

Very soon, investors will be able to invest in mutual funds directly through the stock exchanges on their own and without the assistance of their distributors or Registered Investment Advisors .

The Securities and Exchange Board of India  has asked stock exchanges to allow investors to buy and sell mutual funds directly on their platforms.

With this move, the regulator has now ensured a level-playing field with the mutual fund industry’s own official platform, Mutual Funds Utility, which was launched by mutual funds through the Association of Mutual Funds of India  in 2015.

As a result, investors who wish to invest in mutual funds on their own through direct plans, can make use of MFU directly. The stock exchange platforms- BSE STAR MF  and NMF II – also offered direct plans. But there was a small limitation – direct plans on stock exchanges were available only to those investors who invest in mutual funds through SEBI-registered RIAs.

Just like how investors invest in MFs through distributors on exchanges, the RIAs would initiate a transaction. The investors would then get a weblink on their email which they have to click on, make their payment and complete the transaction.

SEBI’s latest move now allows investors to come to exchanges directly, just as they could go to the MFU entirely on their own.

“This is expected to provide a level-playing field to exchange MF distribution platforms vis-a-vis MF utility,” experts said .

CAMS – one of the largest registrar and transfer agents of the MF industry – also allows investors to invest in MFs without the use of any intermediary, distributor or RIA.

There are already platforms such as Zerodha, Groww and many others that allow investors to invest in MFs through direct plans at zero fee.

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Dollar stumbles as coronavirus ramps up Fed cut bets

By Administrator_India Capital Sands The dollar nursed losses on Friday after its worst day against the euro in nearly two years, as the global spread of the coronavirus fired up expectations for a U.S. rate cut and pushed the hunt for yield elsewhere. The worsening outbreak now has money markets […]

You May Like

Subscribe US Now

Error: Your Requested widget " newsletterwidget-2" is not in the widget list.
  • [do_widget_area fullwidth-homepage-sidebar]
    • [do_widget_area sidebar-1]
      • [do_widget id="search-2"]
      • [do_widget id="recent-posts-2"]
      • [do_widget id="archives-2"]
      • [do_widget id="categories-2"]
    • [do_widget_area widgets_for_shortcodes]
      • [do_widget id="newsletterwidget-2"]
    • [do_widget_area wp_inactive_widgets]