NSE Plans To Launch Mutual Fund Unit Trading Platform Nov 30
MUMBAI -(Dow Jones)- The National Stock Exchange of India Ltd., or NSE, has
said it plans to launch a platform on Nov. 30 for trading mutual fund units.
The platform, called the Mutual Fund Service System, will be open between 0330
GMT and 0930 GMT on market trading days, the NSE said late Tuesday in a circular
on its Web site.
The NSE circular comes after the Securities and Exchange Board of India early
this month allowed the buying and selling of mutual fund units on stock
exchanges, and asked bourses to frame detailed guidelines.
The country's capital markets regulator has said it aims to widen the reach of
mutual fund schemes to smaller cities and towns and cut operational costs.
Waqar Naqvi, chief executive of Taurus Mutual Fund, said the trading platform
will definitely help in expanding reach and reducing costs. "But we are yet to
read into the fine print and are waiting to get more clarity on how this
platform will operate," he said.
NSE said in the circular that its members, which are registered as mutual fund
advisors with the Association of Mutual Funds of India, as well as those who
have tied up with asset management companies, will be eligible to use the
platform, after meeting certain requirements.
Asset management companies who want to use the platform will have to enter
into an agreement with the NSE and the National Securities Clearing Corporation
Ltd.
-By Shikhar Balwani, Dow Jones Newswires; +91 22 6145 6123; shikhar.balwani@
dowjones.com
(END) Dow Jones Newswires
11-25-090306ET
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