National Stock Exchange (NSE) has waived the one time processing fee for the mutual fund distributors in the market. This is mainly because the NSE just wanted these mutual fund distributors to make use of the exchange’s infrastructure in order to sale and purchase the mutual fund units. The NSE has also taken steps for ensuring the quick registration of these mutual fund distributors. For the ease of the mutual fund distributors to register themselves easily with the exchange, the NSE has allowed the processing fee, deposit and the annual renewal fees to be paid through the electronic fund transfer mode.
National Electronic Fund Transfer (NEFT) or the Real Time Gross Settlement (RTGS) are the two different electronic modes or system for fund transfer often used by the market people. Hence NSE is allowing the mutual fund distributors to pay their fee and deposits through these modes.
One Time Processing Fee Waived Till September
The Mutual Fund distributors have shelled out the one time processing fee of Rs. 2500 for making use of the exchange’s infrastructure. This is mainly done when the mutual fund distributor is trying to sell or purchase the mutual fund units from the market on behalf of the clients. The mutual fund distributors will act in place of the clients. On a recent circular by the National Stock Exchange (NSE), it was mentioned that the waiving of one time processing fee of Rs. 2500 will be continuing till the end of September 2015. This was welcomed by the MF distributors.
Previously the fee was waived till the end of December last year. But then the waiving was continued after getting the feedback from the distributors and market people. This is because the mutual fund distributors must be paying every time when they want to make use of the exchange’s infrastructure for selling or redeem the MF units in the market. They distributors felt it really tough when they act in place of their client companies. Read More on stock trading courses
Exchange infrastructure was allowed for the Mutual Fund distributors
In the year 2013 on October, the exchange’s watchdog SEBI has allowed the mutual fund distributors to make use of the exchange’s infrastructure for selling, purchasing and simply redeeming the MF units. Before the new provision made by the SEBI, only the brokers who belong to the stock and the clearing members of the exchange were allowed to make use of the exchange’s infrastructure. Any transactions made by these people will the taking place via the exchange platform previously.
Now the mutual fund distributors are also included in this list. The key note is that they were allowed to make use of the exchange infrastructure without any payment of processing fee at all. This move was actually made to make sure that the mutual fund people in the market is reaching the most in the exchange and can act with the clients at ease. The new circular of waiving the one time processing fee was welcomed by most of the market people and the distributors.
National Electronic Fund Transfer (NEFT) or the Real Time Gross Settlement (RTGS) are the two different electronic modes or system for fund transfer often used by the market people. Hence NSE is allowing the mutual fund distributors to pay their fee and deposits through these modes.
One Time Processing Fee Waived Till September
The Mutual Fund distributors have shelled out the one time processing fee of Rs. 2500 for making use of the exchange’s infrastructure. This is mainly done when the mutual fund distributor is trying to sell or purchase the mutual fund units from the market on behalf of the clients. The mutual fund distributors will act in place of the clients. On a recent circular by the National Stock Exchange (NSE), it was mentioned that the waiving of one time processing fee of Rs. 2500 will be continuing till the end of September 2015. This was welcomed by the MF distributors.
Previously the fee was waived till the end of December last year. But then the waiving was continued after getting the feedback from the distributors and market people. This is because the mutual fund distributors must be paying every time when they want to make use of the exchange’s infrastructure for selling or redeem the MF units in the market. They distributors felt it really tough when they act in place of their client companies. Read More on stock trading courses
Exchange infrastructure was allowed for the Mutual Fund distributors
In the year 2013 on October, the exchange’s watchdog SEBI has allowed the mutual fund distributors to make use of the exchange’s infrastructure for selling, purchasing and simply redeeming the MF units. Before the new provision made by the SEBI, only the brokers who belong to the stock and the clearing members of the exchange were allowed to make use of the exchange’s infrastructure. Any transactions made by these people will the taking place via the exchange platform previously.
Now the mutual fund distributors are also included in this list. The key note is that they were allowed to make use of the exchange infrastructure without any payment of processing fee at all. This move was actually made to make sure that the mutual fund people in the market is reaching the most in the exchange and can act with the clients at ease. The new circular of waiving the one time processing fee was welcomed by most of the market people and the distributors.