NSE extends waiver of processing fee for MF distributors

Leading bourse NSE has extended waiver of one-time processing fee for mutual fund distributors for using the exchange's infrastructure for purchase and sale of MF units.

MF distributors shell out a one-time processing fee of Rs 2,500 in order to use the infrastructure to purchase and redeem mutual fund units on behalf of their clients.

The exchange, in May, had announced the extension of waiver of the fee towards membership application till September 30. It had first announced the waiver in December last year after receiving feedback from market participants.

In a late-night circular yesterday, NSE said, "The waiver shall be effective October 1, 2015."

In October 2013, capital markets watchdog Sebi had allowed MF distributors to use the infrastructure of the exchanges for the purpose.

Prior to that, only stock brokers and clearing members were allowed to transact via the stock exchange platform.

The move was aimed at leveraging the stock exchange platform, which would eventually help MF distributors improve their reach.