BSE StAR MF Platform

BSE StAR MFTM is a browser based front end. Its architecture provides scalable operation and flexible deployment options while ensuring data integrity for improved performance. The system uses ASP.NET as browser based front-end and RDBMS as the back end database.

The platform is feature-rich and highly flexible - it has link-ups with both depositories CDSL and NSDL, facility for one-time registration of client to avoid extra key strokes for repeated buy/sell requests, detailed easy-to-use information on various schemes being offered through the platform and report management features.

BSE StAR MF is configured to accept both physical applications and those in Demat form. Brokers of BSE who are registered ARN (AMFI registration No.) holders are eligible to participate on this platform as Mutual fund Intermediaries (MFIs). MFIs who enter applications for investors who have chosen the Demat Option need not send any physical documents to the RTA and will retain the applications in their office along with all necessary annexures. However where investors have opted for Physical Route, the MFIs would be required to send the physical applications along with annexures to the nearest offices of the RTA as per mutually agreed timelines.

Process-wise, on the first leg (collection of money for application /units for redemption) the BSE and its Clearing Corporation - the Indian clearing Corporation Limited (ICCL) will be responsible for sending the same to the RTAs (registrar Transfer Agents). As far as the reverse leg is concerned, i.e. sending units for purchases and money for redemptions, to the investors, it will be handled by the RTAs directly with the investors, thru physical account statements or through depositories for Demat preference. The Exchange does NOT offer any Settlement Guarantee as the respective AMC is the counter-party for all transactions. However, the BSE would handle the investor grievances, if any, related to the application process (only MFI Model). Any grievance related to the units etc. would have to be taken up by the investor with the RTA / respective AMC.

Pursuant to SEBI circular CIR/IMD/DF/17/2010 dated November 9, 2010, the Exchange launched Phase 2 of the Mutual Funds i.e. the subscription units / redemption proceeds will be routed through the BSE's Clearing Corporation (ICCL) to the Brokers' Pool Accounts and then on to the investors. This would be applicable to all transactions done through the BSE StAR MF platform from the date of launch of Phase 2, i.e. from Friday, December 24, 2010 onwards.

The Exchange has since introduced the investor friendly Systematic Investment Plan (SIP) facility (please see details in the Quick Links Box) on December 10, 2010 and XSIP facility in July,2012 (please see details in the Quick Links Box) which allows investors to invest in Mutual Funds in small affordable instalments, in a regular, disciplined and efficient manner.

Advantages to investors/other stakeholders of using BSE StAR MF:

Independent view of customer's entire portfolio at one place
Reduction of paperwork and ensuing errors
Reduction of redundancy in process and data duplication at RTA and Distributor levels
De-risking MF settlement processes by using superior Delivery v/s Payment (DVP) process provided by Stock Exchanges
Efficiently & effectively address customer servicing issues
Extending present convenience available to Secondary market to mutual fund investors
Enable transparency to customers
Enable charging customers for service at the point where it is rendered