Big funds sign up for the BSE platform

The Bombay Stock Exchange (BSE), which is set to start its mutual fund platform StAR on Friday, has got plenty of support from the industry.

As many as 20 mutual fund houses are said to have signed up, according to a source familiar with the development.

Reliance, Tata Mutual, Birla Sun Life, SBI, HDFC, ICICI Prudential, UTI, DBS Cholamandalam Asset Management, DSP BlackRock, JM Financial, Kotak Mahindra, Deutsche, JP Morgan, Religare, Morgan Stanley, Edelweiss, Axis, Mirae and Taurus are the mutual funds which have confirmed their participation, said a source from the BSE.

The BSE platform would include both the Central Depository Services (India) Ltd and the National Securities Depository Ltd (NSDL), said the source, unlike rival National Stock Exchange’s platform, which has only NSDL as its depository.

Sebi had issued a circular on November 13, which allowed use of stock exchange infrastructure for the sale of mutual funds.

“Units of mutual fund schemes may be permitted to be transacted through registered stock brokers of recognised stock exchanges and such stock brokers will be eligible to be considered as official points of acceptance,” the circular had said.

This would allow investors with demat accounts to purchase stocks on the exchanges through their brokers.

BSE’s rival and the leading exchange in terms of volumes in India, the NSE (National Stock Exchange) had launched its platform on Monday, called NSE’s Mutual Fund Service System (MFSS).

The National Securities Depository Ltd. (NSDL) has come on board as its depository and India’s oldest fund house, UTI, signed on with 30 mutual fund schemes.

Subsequently, Birla Sun Life has joined the platform on the NSE with forty of its schemes effective from Thursday while Reliance is set to start with 12 of its schemes on Friday, according to a notice on the exchange website.

Many of the mutual fund houses are looking to use Friday’s launch as the day to announce their debut on both exchanges’ platforms.

Both Birla Sun Life and Reliance, said that they would be offering their products simultaneously on both exchanges effective Friday.