Close on the heels of the National Stock Exchange (NSE) launching its mutual funds trading platform, the Bombay Stock Exchange (BSE) is also planning to kick off trading in MFs on December 4.
The Asia's oldest bourse is understood to have tied-up with Tata Mutual Fund for the venture and is in talks with 4-5 other leading fund houses to participate in the platform, a source close to the development told PTI here today.
"BSE is likely to start this platform on Friday and is talking to 4-5 funds to participate in the venture," the source said.
BSE is understood to have selected NSDL (National Securities Depository) and CDSL (Central Depository Services) as the depositories for the new venture, the source said.
A host of other funds, including Tata Mutual Fund, Birla MF, Prudential ICICI MF, Reliance and Fidelity, are expected to soon join the NSE platform.
Market regulator Sebi recently gave its approval for facilitating transactions in MF schemes through the stock exchange infrastructure.
"Infrastructure that already exists for the secondary market transactions through the stock exchanges with reach to over 1,500 towns and cities through over 2-lakh terminals, can be used for facilitating transactions in mutual fund schemes," Sebi had said.
Association of Mutual Funds in India's proposed MF trading platform is expected to be operational by March, its Chairman A P Kurian has said.
