New Delhi, Dec 21 (PTI) Leading stock exchange NSE todayannounced the introduction of e-mandate facility on its mutualfund platform, a move that will facilitate SIP registrationsin 2-3 days as compared to 2-3 weeks earlier.
Currently, trading members and mutual fund distributorsregister paper-based mandates for their investors which istime consuming as it involves obtaining signature of aninvestor on the form and submission of physical form atservice centre for processing.
"NSE has taken a step towards 'digital India' byannouncing an e-mandate facility on its mutual fund platform.
Implementation of e-mandates is a very significant steptowards digitisation of transactions in mutual funds.
"The objective is to offer simple and hassle freealternative to the members, MF distributors in form of e-mandate wherein members/MF distributors can register mandateof an investor online, which will be digitally signed based onAadhaar based OTP validation," NSE Managing Director and CEOVikram Limaye said in a statement.
e-Mandate, available for individuals with single mode ofholding, is an Aadhaar based functionality, accordingly,registration of mobile number with UIDAI is mandatory for e-signing of mandate. Currently, maximum limit for e-mandate isRs 1 lakh.
As per UIDAI website, there are about 119 crore Aadhaarnumbers, which hold a huge potential for mutual fund industrythat currently has 6.2 crore folios only.
NSE has implemented e-mandates through HSBC (sponsor bankfor the initiative) along with e-Mudhra as an e-sign serviceprovider.
The National Stock Exchange (NSE) has witnessed a veryencouraging growth in the mutual fund transactions routedthrough its Platform. In the current financial year tillDecember 15, about 48 lakh transactions aggregating to Rs23,345 crore have been processed through its MF platform.
In last two years, the exchange has registered a growthof more than 600 per cent in number of transactions, routedthrough its MF platform.
Further, the number of Systematic Investment Plan (SIP)accounts on the platform have increased from 0.85 lakh as onMarch 31, 2015 to 4.45 lakh as on December 15, 2017. PTI SPMR.
This is unedited, unformatted feed from the Press Trust of India wire.