To bring in more participants on its mutual fund trading platform, top bourse BSE eased the registration norms by doing away with minimum paid-up capital and networth requirements for the applicants.
The changes would be applicable for BSE StAR Mutual Fund Platform — an electronic segment that allows individuals, HUF and corporate body to trade in mutual funds.
In a circular, BSE said it has discontinued several pre-conditions like minimum paid-up capital requirement for corporate applicants, self-certified networth, individuals having a minimum tangible assets of Rs 1 lakh for the registration of mutual fund distributors.
Besides, the minimum networth of Rs 1 lakh on the basis of audited balance sheet of the latest financial year for others will no longer be applicable.
The move would help in attracting more participants on its mutual fund trading platform through distributors.
“All other pre-conditions regarding registration as Mutual Fund Distributor on BSE StAR Mutual Fund Platform remain the same,” the exchange said.
In 2014, capital market regulator Sebi had allowed mutual fund distributors to use the stock exchange platform for non-demat transactions as well as for sale or redemption of these financial products.
The move was aimed at allowing mutual fund distributors to leverage the stock exchange platforms to expand their reach.