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AMCs Start Selling Funds on BSE

The buying and selling of mutual fund units has started on the Bombay Stock Exchange too

Investors can buy funds, not just on the National Stock Exchange (NSE), but as of today, the same can be done on the Bombay Stock Exchange (BSE) too.
 
Asset management companies (AMCs) had started selling funds on NSE from November 30, 2009, with UTI being the first to do so. 
 
BSE’s platform has been christened BSE Star MF Platform while NSE’s is called the Mutual Fund Service System (MFSS). 
 
The Securities and Exchange Board of India (SEBI) had paved the way for funds to be sold on exchanges though its circular dated November 13, 2009 following which a lot of activity was generated in the industry. The positive results were quick to flow as AMCs came forward to quickly script tie-ups and make live the carrying out of such transactions on exchanges. 
 
Fidelity, SBI and HDFC fund houses are amongst the first to start selling funds through BSE, though they also have the same arrangement with NSE. SBI AMC will sell 21 of its funds on exchanges, which includes equity, balanced, and MIPs, amongst others. Purchase applications below Rs one crore will be allowed. 
 
BSE Managing Director and Chief Executive Officer Madhu Kannan said on launch: “We will offer a low-cost inclusive network for all mutual funds and intermediaries. We will also launch an investor awareness programme to popularise the system.”
 
Fidelity, meanwhile, has become the first AMC to offer a New Fund Offer (NFO) through both the exchanges. Investors can subscribe units of Fidelity India Value Fund, an open-ended equity fund during its NFO period through both the exchanges. 
 
HDFC AMC, on the other hand, has short-listed 20 of its funds to be sold through the BSE, which includes open-ended equity, balanced and debt funds.  
 
Birla Sun Life AMC, which started selling 44 of its funds through the NSE from Thursday, started selling five of its funds through the BSE from today. 
 
Both the platforms will facilitate purchase and redemption of mutual fund units by investors through any NSE or BSE brokers and sub-brokers across its network. 
 
The BSE MF system got off to a better start than NSE, when on the first day of trading it recorded an turnover of Rs 8.44 crore, translating into 250 orders.
 
In comparison, on day one, when MFSS became active on NSE, 300 applicants bought UTI funds worth Rs 75 lakh (on November 30, 2009).