Distributors voice concerns with NSE's updated mutual fund platform

MF distributors flag concerns over client mapping and data security in NSE's upgraded platform, but the exchange says extensive testing was done and transactions remain seamless

Mutual fund (MF) distributors using the National Stock Exchange’s (NSE’s) online platform have flagged multiple issues following a recent upgrade.

 

According to the Foundation of Independent Financial Associates (Fifa) India, a pan-India association of distributors, the updated system has led to concerns around data security, client mapping, transaction processes, and payments.

 

One of the key issues highlighted is flawed client mapping. “Client mapping has not been done correctly. All clients under the main broker are visible to all sub-brokers. This is a serious breach of data security. In the earlier platform, client segregation was maintained," the association stated in a social media post.

 

In response, NSE maintained that the platform — relaunched on August 25 as an enhanced version of the earlier one — has been operating without disruption. “All transactions are being processed seamlessly,” the exchange said, adding that it had conducted extensive online and offline demo sessions over the past six months. 

 

“The platform has worked satisfactorily and very few specific complaints have been received, which have been resolved. We have undertaken hundreds of online and offline demo sessions in the past from February 7 to August 14, 2025, and they have been appreciated by participants," it said.

 

The upgraded platform offers features such as a 30-minute extension for same-day net asset value (NAV) cut-off (to 1 pm from 12.30 pm), two-factor authentication, and additional banking options.

 

Fifa India’s post drew responses from senior executives of the fund industry, including Nilesh Shah, managing director (MD) of Kotak Mahindra AMC.

 

“Thanks for bringing this to our attention. We will work together to ensure that the ease of doing mutual fund investment remains as good as doing investment in stocks,” Shah commented.