In an attempt to broadbase the presence of mutual funds (MFs) in the country, the Securities and Exchange Board of India (Sebi) today said that the existing stock exchange infrastructure might be allowed for transactions in MF schemes.
“Units of mutual fund schemes may be transacted through registered stock brokers of recognised stock exchanges, and such stock brokers will be eligible to be considered as official points of acceptance,” Sebi said in its note.
At present, the existing infrastructure for secondary market transactions covers 1,500 cities through 200,000 terminals. Now, the intending stock brokers will be required to pass the Association of Mutual Fund in India certification examination.
There will be an empanelment and monitoring of code of conduct for brokers acting as mutual fund intermediaries.
“All such brokers will then be considered as empanelled distributors with mutual fund/asset management companies (AMCs),” said Sebi.
The regulator has also asked fund houses to take steps in coordination with Registrar and Transfer Agents (RTA), depositories and depository participants (DPs) in case investors sought to convert existing physical units of MF schemes into a dematerialised form.
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