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mutual funds

SEBI circular dated 26th February, 2020 allowing investors to purchase mutual funds directly from the stock exchanges instead of through the distributors.

https://www.sebi.gov.in/legal/circulars/feb-2020/facilitating-transaction-in-mutual-fund-schemes-through-the-stock-exchange-infrastructure_46093.html

Subject: Facilitating transaction in Mutual Fund schemes through the Stock
Exchange Infrastructure

1. SEBI vide its Circular no. CIR/MRD/DSA/32/2013 dated October 04, 2013, and
CIR/MRD/DSA/33/2014 dated December 09, 2014 had permitted mutual fund distributors
to use recognised stock exchanges’ infrastructure to purchase and redeem mutual fund
units directly from Mutual Fund / Asset Management Companies.
2. Subsequently, SEBI vide its Circular no. SEBI/HO/MRD/DSA/CIR/P/2016/113 dated
October 19, 2016 allowed SEBI Registered Investment Advisors (RIAs) to use
infrastructure of the recognised stock exchanges to purchase and redeem mutual fund
units directly from Mutual Fund/ Asset Management Companies on behalf of their
clients, including direct plans.
3. In order to further increase the reach of this platform, 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.

4. The recognised stock exchanges, clearing corporations and depositories may make
necessary amendment to their existing byelaws, rules and/or regulations, wherever
required.
5. 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.
6. This circular is available on SEBI website at http://www.sebi.gov.in at “Legal
Framework→Circulars”.

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