Sounds interesting after ETF’s now it the time for Mutual Funds to get traded.
The National Stock Exchange on Tuesday announced the introduction of mutual fund service system, a platform on which mutual fund units will be traded through the stock exchange infrastructure, from November 30.
The Bombay Stock Exchange is also developing a similar platform with Central Depository Services.
All trading members of the exchange who are registered with the Association of Mutual Funds of India [ Images ] as mutual fund advisors and who have signed up with specific AMCs will be eligible to participate in MFSS. Trading members will have to register with NSE as “participants”.
A fully-automated on-line order collection system, called NEAT-MFSS, will be provided to the “participants”, who can use their existing telecom network to connect to this system and enter requests for subscription and redemption of MF units. Participants can choose between physical and depository modes while capturing subscription/redemption requests.
The pay-in of funds for subscription will be through designated bank accounts. The subscription transactions will be settled on a T+1 basis according to the timelines specified by the clearing corporation. Pay-out of funds for redemption transactions will have to be directly made to investors from the registration and transfer agent for both physical and demat modes. [Source]
This would be great as there would be no need of an Mutual Fund Broker to buy and sell the fund. This would cause an increase in volatility indeed.
