Sunday, December 6, 2009

NSE to launch MF platform tomorrow, fund houses keen to join

New Delhi, Nov 29 : The country's top mutual fund houses, including UTI Mutual Fund, are keen to join National Stock Exchange's new mutual fund service system (MFSS), which will be launched tomorrow.

According to market sources, UTI Mutual Fund will be the first to leverage the NSE's mutual fund platform, which would enable exchange's members to use its existing infrastructure for transaction in MF schemes.

Initially, UTI will list its equity and debt s chemes that are in about 30 numbers, people familiar with the matter said.
Along with UTI, "all top mutual fund houses are keen to join this platform," he added.

UTI spokesperson could not be reached for comment on the issue.

At the end of October, UTI Mutual Fund had an average asset under management (AUM) of Rs 76,847 crore.

NSE's new MFSS will commence from November 30 and it will substitute the existing MF scheme, introduced in 2000.

Market regulator SEBI, recently gave its approval for facilitating transactions in MF schemes through stock exchange infrastructure.

"The infrastructure that already exists for th e secondarymarket transactions through the stock exchanges with its reach to over 1,500 towns and cities, through over two lakh stock exchange terminals can be used for facilitating transactions in mutual fund schemes," SEBI had said.

According to SEBI, the stock exchange mechanism would also extend the present convenience available to secondary market investors to mutual fund investors.

Market participants are enthusiastic about new MF platform and a number of fund houses are expected to join this facility in the coming days. At present, 36 mutual fund houses are operating in the country.

NSE's mutual fund platform will be available on all business days between 9 am to 3 pm.

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