Leading stock exchange BSE today clarified that transaction charges will not be levied on mutual fund Intermediaries (MFIs), mutual fund distributors (MFDs) and Registered Investment Advisors (RIAs) for transacting on its MF platform.
The charges, which came into effect from yesterday, will only be levied on Asset Management Companies (AMCs), it said.
"Transaction charges shall be applicable to participating AMCs or on BSE Star MF Platform. There are no charges for MFIs, MFDs and RIAs to transact on BSE Star MF Platform," the exchange said in a circular.
The exchange, on Wednesday, announced that it will levy transaction charges, varying from Rs 6 to Rs 30, on all orders routed through its mutual fund platform from December in order to cover the costs of operations.
Mutual fund distributors can use the stock exchange platform for non-demat transactions as well for sale or redemption of MF products.
BSE Star MF is the largest MF distributor platform in India with more than 4 lakh SIPs (Systematic Investment Plans) per month. On many occasions, the platform has exceeded 1 lakh (rpt) 1 lakh orders per day.