8,238.85-358.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Sebi allows investors to directly transact in mutual fund units on bourses

Sebi directed exchanges, clearing corporations & depositories to make changes to their bylaws.

ETMarkets.com|
Last Updated: Feb 27, 2020, 08.57 AM IST
0Comments
Reuters
Sebi Reuters 1200
Sebi had earlier allowed MF distributors to use the platform for purchase and redemption of mutual fund units.
MUMBAI: The Securities and Exchange Board of India (Sebi) on Thursday said it has allowed investors to directly access stock exchange infrastructure to purchase and redeem mutual fund units.

The markets regulator pointed out that it had earlier allowed mutual fund distributors and registered investment advisors to use the platform for purchase and redemption of mutual fund units.

“In order to further increase the reach of the platform, it has been decided to allow investors to directly access infrastructure of the recognised stock exchanges to purchase and redeem mutual fund units directly from MutualFund/ Asset Management Companies.” the regulator said in a release.

SEBI has directed recognised stock exchanges, clearing corporations and depositories to make necessary amendments to their existing bylaws, rules and regulations, wherever required to enable this framework.

“A large set of investors who invest directly have to do so through each specific mutual fund’s website. That was a logistical challenge. The Sebi’s move would make investing in mutual funds operationally efficient,” said Vishal Dhawan, Founder at Plan Ahead Wealth Advisors, a financial planning firm.

“However, the availability of infrastructure should be prudently used, so that investors don’t start ‘trading’ in mutual funds,” added Dhawan.

Also Read

What are overnight mutual funds?

SBI Mutual Fund tops HDFC Mutual Fund as No 1 asset manager

How to select a mutual fund?

What are quant mutual funds?

Mutual funds for a new investor

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service