BSE Star, the online platform for mutual fund distributors, has decided to charge a nominal fee on 26 asset management companies for using its services. The platform will negotiate with each fund house separately and collect fee on a bilateral basis.
The fund houses which have agreed to pay a fee account for 74 per cent of the industry’s assets under management.
On the whole there are 37 mutual fund houses in India.
Additional resources collected through the levy of fees will be utilised to provide better services to AMCs and help further automation of the industry, said BSE in a statement on Wednesday. Ashishkumar Chauhan, Managing Director, BSE, said the relationship with the mutual fund industry and over 1.5 crore mutual fund investors registered on the platform will become stronger with the long-pending issue being resolved amicably.
“I am sure, the remaining AMCs will also see the value being provided by BSE Star MF and soon pay charge per transaction,” he added.
The platform has over 20 per cent market share and processed over 20 lakh transactions in February with an average transactions of over one lakh a day. It added nearly 1,000 new mutual fund distributors and 1.75 lakh new SIPs in February.
It caters to over two lakh independent financial advisors, brokers, broker branches and associates in over 3,000 cities.
