BSE to launch online payment facility for demat transactions

This is to facilitate investors and mutual fund distributors

To facilitate investors and mutual fund distributors, leading bourse BSE will introduce online payment facility for demat mode of transactions on its mutual fund (MF) platform.

"The exchange is pleased to extend the facilities of online payment services for demat mode of transactions. Demat mode of transactions shall be processed only on realisation of funds for all types of orders," BSE said in a circular.

Last week, BSE said it will introduce a multi-bank facility for distributors to register clients on its mutual fund platform, BSE StAR MF.

Currently, mutual fund distributors can register only one bank account while registering a client on the BSE StAR MF Platform.

In March, BSE had announced a host of new services on its mutual fund platform, including digital non-demat transactions, round the clock order acceptance and six-day order holding facility to help investors and distributors of such products.

In 2014, capital market regulator Sebi had allowed mutual fund distributors to use the stock exchange platform for non-demat transactions as well for sale or redemption of these financial products.

The move was aimed at allowing mutual fund distributors to leverage the stock exchange platforms to expand their reach.