Paperless e-mandate for mutual fund investors to be launched by BSE

Investors in Mutual Fund (MF) have reasons to cheer as the Bombay Stock Exchange (BSE) on Friday said that it will come up with e-mandate facility on Saturday for its mutual fund distribution platform.

This facility will help tremendously to investors in reducing the SIP registration cycle.

“This (e-mandate) is completely paperless framework that will reduce the time taken for mandate approval to 3 days from 10 to 35 days taken for paper based mandate approval,” BSE said in a statement.

“This is a significant development. We are confident that BSE StAR MF has the potential to completely change the distribution framework of mutual fund industry by reducing the cost and increasing the predictability of processes,” BSE Managing Director and CEO Ashishkumar Chauhan said.

Till now the mutual fund distributors register paper-based mandates for their investors , which was time consuming and the investor has to manually put their signature and the form had to be submitted physically at the service centre for processing.

To begin with, the e-mandate services will be available only to the consented schemes on the exchange’s mutual fund distribution platform—BSE StAR MF.

“BSE has always been sensitive to the requirement of investors and its mutual funds members and understands the importance of SIPs therefore is introducing the 4th option to start systematic investment plan through BSE StAR MF,” the exchange noted.

(With PTI inputs)