Today, Birla Sun Life AMC has started selling its funds through the National Stock Exchange (NSE). Birla Sun Life will sell 44 of its funds, which includes open-ended equity, balanced, MIPs, debt and government securities funds. Liquid and Liquid Plus category has however, been excluded as of now. The subscription amount per transaction should be less than Rs 1 crore.
Securities and Exchange Board of India (SEBI) paved the way for funds to be sold through exchanges, with UTI MF being the first to start selling its funds on the NSE from November 30.
NSE’s Mutual Fund Service System (MFSS) enables its brokers’ network to buy and redeem units of eligible mutual fund schemes using network and order collection mechanism provided by NSE. This will facilitate purchase and redemption of mutual fund units by investors through any NSE brokers and sub-brokers across its network of almost 2, 00,000 terminals spread over 1,400 towns and cities.
Interestingly, on day one, when MFSS became active on NSE, 300 applicants bought UTI funds worth Rs 75 lakh (on November 30, 2009).
With NSE taking the lead, BSE is also about to roll-out its fund transaction platform.