Facilitating transaction in Mutual Fund schemes through the Stock Exchange Infrastructure
Summary
SEBI permits investors to directly access stock exchange infrastructure for purchasing and redeeming mutual fund units. This decision extends previous permissions granted to mutual fund distributors and Registered Investment Advisors. Recognized stock exchanges, clearing corporations, and depositories are instructed to amend their byelaws and regulations as necessary.
Text
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 Mutual Fund/ Asset Management Companies.
The recognised stock exchanges, clearing corporations and depositories may make necessary amendment to their existing byelaws, rules and/or regulations, wherever required.
This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Facilitating transaction in Mutual Fund schemes through the Stock Exchange Infrastructure. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.