ET Money suspends investments, SIP registration in Quant MF schemes

Cites failure to onboard the AMC under EOP framework

Online mutual fund (MF) distribution platform ET Money on Friday said it had suspended fresh lumpsum investments and SIP registration in Quant MF schemes owing to pending 'business and operational integration' with the fund house.

ET Money will, however, allow existing SIPs to continue. 

The platform, which used to work under a Registered Investment Advisor (RIA) licence, recently registered as an execution-only platform (EOP) with the Association of Mutual Funds in India (Amfi). The company has to get into agreements with each fund house separately after negotiations on transaction fee.

AMCs can pay a maximum fee of Rs 2 per transaction. ET Money said it had managed to get into agreement with all fund houses except for Quant.

"ET Money has been able to engage and work with all AMCs for this operational movement, except Quant Mutual Fund. As a team, we have been trying to engage Quant Mutual Fund since December 2023. However, our efforts to get started were unsuccessful," it stated.

The company added that the talks have resumed with Quant MF after the suspension of transactions on May 31.

ICCL refutes glitch reports, says MF delays due to banks

Indian Clearing Corporation Limited (ICCL) on Friday refuted reports that it delayed the processing of mutual fund transactions on June 4, saying it successfully processed more than 3.2 million subscription orders amounting to Rs 2,445 crore on that day. “It is clarified that there was no technical glitch at ICCL and that there was no delay in processing the orders on the part of ICCL. However, some instances have been brought to the notice wherein, delay was prima-facie attributable to payment aggregators/banks involved in the process of subscription, and hence transactions of some investors could not be processed in time," it said.