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| NSE kicks off MF trading with UTI |
| Press Trust of India / Mumbai Nov 30, 2009, 18:22 IST |
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The country's leading bourse National Stock Exchange (NSE) made its mutual fund trading platform operational today beginning with UTI Mutual Fund.
Other top fund houses in the country-- Tata Mutual Fund, Birla MF, Prudential ICICI MF, Reliance and Fidelity have approached the NSE to make their products available on the new trading platform and are likely to join soon.
The new platform will enable investors to buy and sell MF products through over 1.5 lakh trading terminals of NSE in the same way equity shares are traded through brokers, NSE Managing Director & Chief Executive Officer Ravi Narain said.
In the initial phase NSE and NSDL, which is the designated depository for MF trading through the exchange, will waive all charges for trading on the new platform to attract investors.
As of now, UTI will list around 30 of its equity and debt schemes for trading on this new platform and will look at offering more schemes in the future, UTI MF Chairman and Managing Director U K Sinha said.
"The platform will also facilitate quicker settlement of transactions and provide a single window to demat holders for their investments," Sinha said.
Speaking at the launch of the new platform Securities and Exchange Board of India (Sebi Chairman C B Bhave today said trading mutual fund products through the exchange platform will benefit investors in mutual fund schemes.
Market regulator, Sebi, recently approved transactions in MF schemes through stock exchanges.
"The infrastructure that already exists for the secondary market transactions through the stock exchanges with its reach to over 1,500 towns and cities, through over 2 lakh terminals can be used for facilitating transactions in mutual fund schemes," Sebi had said.
As on October-end, UTI Mutual Fund had an average assets under management (AUM) of Rs 76,847 crore. Investors will also have the added advantage of obtaining the same day's NAV and get the units allotted in demat mode in addition to the existing physical mode.
At present, there are 36 mutual fund houses operating in the country. NSE's mutual fund platform will be available on all business days between 9 am-3 pm.
Association of Mutual Funds in India (AMFI) Chairman A P Kurian said its proposed mutual fund trading platform is expected to be operational by March.
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