BSE to launch paperless e-mandate facility on mutual fund platform

Leading stock exchange BSE today said it will introduce e-mandate facility on its mutual fund distribution platform from tomorrow, a move that will help in significantly reducing SIP registration cycle.

"This (e-mandate) is completely paperless framework that will reduce the time taken for mandate approval to 3 days from 10 to 35 days taken for paper based mandate approval," BSE said in a statement.

Currently, mutual fund distributors register paper-based mandates for their investors, which is time consuming, as it involves obtaining signature of an investor on the form and submission of physical form at service centre for processing.

"This is a significant development. We are confident that BSE StAR MF has the potential to completely change the distribution framework of mutual fund industry by reducing the cost and increasing the predictability of processes," BSE Managing Director and CEO Ashishkumar Chauhan said.

Last month, National Stock Exchange had announced the introduction of e-mandate facility on its mutual fund platform.

To begin with, the e-mandate services will be available only to the consented schemes on the exchange's mutual fund distribution platform -- BSE StAR MF.

The exchange has implemented e-mandates through HSBC and ICICI (as sponsor banks) along with Digio as e-sign service provider.

e-mandate, available for individuals with single mode of holding, is an Aadhaar based functionality, accordingly, registration of mobile number with Unique Identification Authority of India (UIDAI) is mandatory for e- signing of mandate. Currently, maximum limit for e-mandate is Rs 0.1 million.

"BSE has always been sensitive to the requirement of investors and its mutual funds members and understands the importance of SIPs therefore is introducing the 4th option to start systematic investment plan through BSE StAR MF," the exchange noted.

Currently BSE StAR MF already has 3 option to start SIPs -- SIP - payment link based, ISIP - biller based and XSIP - NACH Mandate.

In 2017, it had processed a total of 10.3 million transactions worth more than Rs 1 trillion.