BSE to levy transaction fee on AMCs using its mutual fund platform
The exchange, on Wednesday, announced that it will levy transaction charges, varying from Rs 6 to Rs 30.
Asia's oldest bourse BSE on Friday said it will levy charges on Asset Management Companies (AMCs) for using its mutual fund platform for sale and purchase of MF units.
However, the exchange said transaction charges will not be applicable on individuals, mutual fund intermediaries (MFIs), mutual fund distributors (MFDs) and Registered Investment Advisors (RIAs).
The charges, which came into effect from yesterday, will only be levied on AMCs. BSE runs the mutual fund trading platform -- BSE Star MF. The platform provides a range of services for easy transactions and seamless order flow for asset management companies.
"Transaction charges shall be applicable to participating AMCs or mutual funds on BSE Star MF Platform. There are no charges for MFIs, MFDs and RIAs to transact on BSE Star MF Platform," the exchange said in a circular.
The exchange, on Wednesday, announced that it will levy transaction charges, varying from Rs 6 to Rs 30, on all orders routed through its mutual fund platform from December in order to cover the costs of operations.
Mutual fund distributors can use the stock exchange platform for non-demat transactions as well for sale or redemption of MF products.
BSE Star MF is the largest MF distributor platform in India with more than 4 lakh SIPs (Systematic Investment Plans) per month. On many occasions, the platform has exceeded 1 lakh orders per day.