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A Quick Reference Guide

for Mutual Fund
Distributors (MFDs)
 INDEX
Sr. No. Details

1 About BSE

2 Genesis of the StAR MF platform

3 Benefits for the stakeholders

4 StAR MF platform Features

5 Eligibility for Participation

6 Advantages of platform vis-à-vis physical

distribution mode

7 Broad structure of the StAR MF platform

8 Timelines

9 Systematic Investment Plan 'SIP' Facility

10 Exchange SIP or 'XSIP' Facility

11 Transactions on behalf of NRIs

12 Commonly Asked Questions

1
About BSE:
BSE – Driving the Indian capital market:
Asia's first stock exchange, BSE continues to bring trust and stability to the capital market in India. It has
over 100,000 trading terminals connected through 2700+ high-speed lease Lines and 1500+ VSATs which
are spread over 203 cities.

BSE has a proven trading and settlement platform assuring efficient on-time transactions and is a Self-
Regulatory Organization (SRO) ensuring transparency to all stakeholders. It has ISO certified processes
governing clearing and settlement, Information Technology and Surveillance and offers seamless
settlement processes.

Also, BSE has 2 of the world's best exchanges, Deutsche Börse and Singapore Exchange, as its strategic
partners. BSE’s flagship product – SENSEX, India's first stock market index launched in 1986 is regarded
as the barometer of the Indian capital markets and is widely tracked worldwide.

BSE offers an array of products in the Indian capital market for its members to trade. The products that
are currently available are Equity, Equity Derivatives (F&O segment), Debt segment, SME Segment,
Direct Market Access, Securities Lending & Borrowing, Automated Trading, Exchange Traded Funds
(ETFs) and Mutual Funds.

BSE’s popular equity index - the S&P BSE SENSEX - is India's most widely tracked stock market
benchmark index. It is traded internationally on the EUREX as well as leading exchanges of the BRCS
nations (Brazil, Russia, China and South Africa).

Salient Facts about BSE:

(Figures as on September 2013)

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2. Genesis of the StAR MF platform:
In order to extend the same convenience as investors in the secondary market have, to investors in
Mutual funds, a SEBI Committee comprising exchanges, industry and depositories mapped out the
modalities for collecting applications for Mutual Fund transactions through Stock Exchanges. The
Committee had representatives from Industry, RTAs and of course, BSE and NSE.
With a new emphasis on gaining market share, the BSE has been focusing on enhancing performance
through technology differentiation and innovation in products and services. This is apparent in some of
the announcements made by the BSE in recent months. While we seek out new avenues for growth,
bringing in greater financial inclusion and promoting efficiency in the Indian capital market, the Mutual
Fund platform BSE Stock Exchange Platform for Allotment and Redemption of Mutual Fund Units or
StAR MF, that was launched by the SEBI Chairman on December 4, 2009, is one of our key initiatives in
this direction. It may be mentioned here that the BSE StAR MF Platform has also won recognition from
the IT Industry by bagging the prestigious CNBC Nasscom IT Users’ Award and the SKOCH Excellence
Award. The platform is entirely browser-based and the authorized user simply requires a PC and an
internet connection.

SEBI vide its circular CIR /MRD/DSA/32/2013 dated 4th October, 2013 has allowed Mutual Fund
Distributors to use recognised stock exchanges' infrastructure to purchase and redeem mutual fund
units directly from Mutual Fund / Assets Management Companies on behalf of their clients.

3. Benefits for the stakeholders:

Investors
1. Reduction in paper work: With respect to application forms, collection statements. Demat
account holders benefit from much shorter delivery times than Physical account holders as
Demat obviates significant amount of paper movement.

2. Faster Execution: Allotment by way of Demat credit. Hence investors can get Demat units on
the same day/next working day following their date of application as well as redemption
proceeds as per the respective TATs followed by the RTAs for each scheme.

3. Convenience: Existing investors can now invest through the registered Mutual Fund
Distributors (MFDs) on BSE StAR MF Platform. Investors have the added convenience of
viewing their Mutual fund investments all in one place along with the other investments in a
single Demat account.

MFDs
1. More products to offer: Now investors can buy MF units through their MFDs.
2. Increased Convenience: The platform is web-based and hence far more easily accessible to
MFDs. The platform is also extremely user-friendly.
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 3. Broader Customer base : Investor who are currently investing in MFs can be introduced to
secondary markets and vice versa leading to higher client capture.
4. MF distributors shall not handle payout and pay in of funds as well as units on behalf of
investor. The pay in will be directly received by recognised the Indian Clearing Corporation Ltd
(ICCL) and payout will be directly made to investor account. In the same manner, units shall be
credited and debited directly from the demat account of investors.

The platform is continuously upgraded and also incorporates useful suggestions from our constituents.
AMCs and, of course, the all-important investors. As of September 2013, we have 33 AMCs covering
over 96% of the industry AUM on platform offering 2740 scheme options.

4. StAR MF platform features:

BSE StAR MFTM is a browser-based fully automated online MF transaction processing system. The
platform is feature-rich and highly flexible with:
Browser-based front-end with a feature-rich and highly flexible platform
Architecture that provides scalable operation and flexible deployment options
Link-ups with both depositories - CDSL and NSDL and all RTAs
Facility for one-time registration of client
Facility of Branch, Dealer creation & Client level limit allocation – in-built risk management
Bulk upload facility to Register Clients, Mapping client with Dealers/Branches, Client Payment
Rejection, Order Entry (including SIP orders), updating Branches/Dealers/Clients balances
Detailed & easy-to-use information on various schemes on offer
Relevant report management features for BO and MIS
Report Generation facilities
Offers to investors for friendly and popular SIP (Systematic Investment Plan) facility
User-friendly Order Entry with option of viewing schemes AMC wise, NFO/Open Market wise,
SIP Schemes, Scheme Type wise, Institutional / Retail wise
MIS for the AMCs who are our partners
BSE StAR MF is configured to accept and process applications for Mutual Fund units in Demat
form
Handles schemes of various TATs – Upto T+6 Settlement

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5. Eligibility for participation:
All Mutual Fund Distributors (MFDs) who are registered with Association of Mutual Funds in India (AMFI)
and who have been permitted by BSE are eligible to participate on this platform as Mutual Fund
Distributors (MFDs). This requires certain formalities to be completed and the interested MFD may
please visit www.bseindia.com for further details
BSE now conducts NISM Certification Examination (mandatory for obtaining ARN number) through its
BSE Training Institute and also offers courses that provide knowledge and information on the Mutual
Fund industry. If you or your employees are interested in taking the AMFI certification examination, you
may please visit www.bseindia.com for further details on training courses as well as Certification /
Examination details.

6. Advantages of platform vis-à-vis physical distribution mode:

Reduction of paperwork and ensuing errors

Reduction of redundancy in process and data duplication at RTA and Distributor levels
De-risking MF settlement processes by using superior Delivery v/s Payment (DVP) process
provided by Stock Exchanges
Efficiently & effectiveness in addressing customer servicing issues
Enable transparency to customers
Charging customers for service at the point where it is rendered

7. Broad structure of the StAR MF platform:

 Stock Exchange platform offers collection of buy/sell orders in demat mode for those MFs that
desire so.
 Under Demat Route, investors need to open a Demat Account with a Depository Participant of
their choice
 MFDs with ARN & NISM certification can extend the facility of online transaction in Mutual
funds through BSE StAR MF after fulfilling few formalities with BSE and empanelling with
respective AMCs (where necessary)
 Existing NAV norms (cut-off at 3pm) to apply. Platform available from 9.00 a.m. to 3.00 p.m.
 Equity, Debt and Liquid Schemes of MFs available on this platform
 MF to be counter party for all transactions – no Settlement Guarantee provided by BSE as it acts
as facilitator only – however, Investor Grievance Mechanism that is presently available to equity
transactions is available for Mutual Fund transactions also.

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8. Basic timelines for the StAR MF Platform
Subscription Activities :

Time
Process T Day
L0 L1 Normal
Upload the final subscription transaction feed to RTAs for all the
valid purchase transactions received from 9:00 a.m. to 3:00 p.m.
(L0/L1 upto 1:00 p.m). In case of any rejections from the RTA 1:00 p.m. 1:00 3:30 p.m.
then the same would be rejected from the Exchange’s system p.m.
and will not be considered for any further process
T Day T Day T+1 Day
Fate of Pay-in to be received from Clearing Banks 1:30 p.m. 2:00 9:30 a.m.
p.m.
Credit confirmation to be given to the RTAs 1:45 p.m. 2:45 10:30
p.m. a.m.
Transfer of Funds related to subscription transactions to the Before 2:00 Before Before
credit of AMC account p.m. 3:00 12:00
p.m. noon
L1/Normal
Receipt of Reverse Feed File for subscription transactions 2:00 p.m. 11:30 a.m.
Uploading of Corporate Action (CA) file to both the Depositories Before 3:30 Before 2:30 p.m.
(Done by RTA/AMC) p.m.
Processing of CA file and generation of the Units in AMC Before 3:30 Before 2:30 p.m.
beneficiary account (Done by Depository under instructions of p.m.
RTA/AMC)
Transfer of the units from AMC Beneficiary account to AMC Pool Before 3:30 Before 2:30 p.m.
account in NSDL depository (Done by Depository under p.m.
instructions of RTA/AMC)
Making the Client level pay-in from the AMC beneficiary account Before 3:30 Before 2:30 p.m.
to BSE’s Clearing Corporation (ICCL) in CDSL Depository (Activity p.m.
to be conducted by respective AMC)
Uploading of Auto DO instructions by the ICCL in NSDL Not Before 2:30 p.m.
Depository Applicable
Receipt of Pay-in files from both the Depositories By 3:45 p.m. By 2:45 p.m.
Uploading the pay-out file in both the Depositories resulting in By 4:00 p.m. By 3:00 p.m.
transfer of units in Client’s Account

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Redemption Activities :
T Day
Process Time
Upload the validation transaction feed to RTA’s for all the valid redemption 3:30 p.m.
transactions received up to 03:00 p.m. In case of any rejections from the RTA, the
same would be rejected from the Exchange’s system and will not be considered for
any further process

Investors to give the DIS in respect of the units redeemed to their respective Latest up to
Depository Participant (DP) 04:30 p.m.

Clearing house to upload the Receipt in file in both the depositories to enable the Up to 04:30
transfer of units from the Investors account to the Clearing House account p.m.

Clearing house to upload the Delivery Out file in both the Depositories to enable Up to 05:30
transfer of units from Clearing House account to the AMC beneficiary account p.m.

Exchange to upload the final Redemption transaction feed to RTA for all the valid Up to 06:00
redemption transactions received up to 03:00 p.m. and those transactions in case p.m.
of which securities are received by the Clearing House and transferred to AMC
beneficiary account.

T + 1 Day

Process Time
Receipt of Reverse Feed File for valid Redemption Transactions in case of both 09:30 a.m.
Debt/Liquid and Equity Scheme
Credit of ICCL Bank Account for Valid Redemption transactions in case of Debt and 11:30 a.m.
Liquid Scheme
Transfer of Funds Pay-out in respect of Debt / Liquid Scheme to the Client’s Bank 01:00 p.m.
Account

9. Systematic Investment Plan “SIP” through BSE StAR MF

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The MFDs can register SIP for their clients on the StAR MF Platform through the demat (dematerialized)
mode. The detailed operating instructions as well as the process guidelines for transacting in SIP for
those schemes that are allowed on the StAR MF platform can be viewed on the following URL :

http://www.bseindia.com/downloads/SIP-OperatinginstructionsandProcessManual.pdf

10. XSIP – Exchange Systematic Investment Plan

In order to take away the burden of MFDs in administrative activity for registering mandates and
collecting SIP payments from the clients on the due date, the Exchange has offered XSIP facility on BSE
StAR MF Platform on Friday July 27, 2012.

XSIP or EXCHANGE SIP is a facility offered to the MFDs to register their client’s ECS Bank Mandates and
upon successful registration with the destination bank, to start registering SIPs for their mutual fund
clients. One the SIP is registered, the exchange would be sending the SIP installment collection data to
the vendor Agency well in advance of the SIP installment due date and hence the SIP registration
(effective START date for XSIP) and STOP request by the MFDs will be allowed up to T-10 working days
only.

Once the SIP is registered in the system, the MFDs work ends. The StAR MF system will automatically
generate SIP orders on due date and the ICCL will arrange to collect the SIP installments thru the Agency
(vendors) and send the same to the respective participating AMC on the due date. The client bank
account will be debited between 3 to 5 working days before the SIP Due date as per the Location of the
Clients Bank Account. Thus to the extent of value of XSIP orders on due date the MFDs obligation to pay
money on T+1 in the pay-in to the exchange will be reduced. Presently this facility is offered free of
charge to MFDs and the Exchange is bearing the cost of this facility with some contribution from the
participating AMCs.

It may be noted that this XSIP facility is offered as an OPTION and the MFDs may choose to continue
registering SIPs and collecting funds from their client as they are doing today OR may shift to the XSIP
process. Further, the XSIP facility would be available to MFDs only in respect of those AMCs that have
agreed to participate in the XSIP process with the Exchange.

The detailed operating instructions as well as the process guidelines for transacting in XSIP for those
schemes that are allowed on the BSE StAR MF platform can be viewed on the following URL :

http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20120725-19
http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20120810-28

11. Transactions on behalf on NRIs

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BSE StAR MF Platform has started accepting subscription and redemption transactions on
behalf of Non Resident Indians (NRIs) through their respective NRE/NRO accounts as applicable.
This was an important facility that was missing on the online platforms and has now been
introduced with sufficient safeguards regarding source and destination of funds invested in
AMCs. MFDs transacting on behalf of NRI clients are required to send a scanned copy of the
Foreign Inward Remittance Certificate (FIRC) or Debit letter in support of each and every
subscription transaction to the AMC, superscribing thereon the Investor DP and Client ID as well
as the ORDER ID of StAR MF. With these safeguards, the RTA would be able to track the source
of funds as per RBI requirements.

12. Commonly Asked Questions on BSE StAR MF

1. How is StAR MF different from the existing process for subscription and redemption of
mutual funds?

Till now, an investor who wanted to subscribe to a mutual fund had to identify a distributor of
the mutual fund and submit all documents along with the payment instrument where
applicable, to the distributor or directly to Mutual Fund/AMC/RTA. The
subscription/redemption request would then get processed and the investor would know about
the status of the request only in the form of a direct communication from Mutual
Fund/AMC/RTA. In StAR MF, the investor has a chance to deal with an AMFI registered Mutual
Fund Distributor who is eligible to participate in StAR MF for subscription / redemption of units.
MFD would enter the order into StAR MF. Investors would be able to know the order details
and modify their order details till the order acceptance time ends i.e. up to 3.00 pm. By the
end of the day, the investor would also get to know about the status of his order and the value
at which the units/proceeds would get credited/redeemed to his account.

2. What is the registration process for MFD?

A very simple process of registering by paying a Lifetime MFD Fee of Rs. 15,000/- plus service
tax and other requirements specified by BSE. For detailed documentation and checklist for
Registration as the ‘Mutual Fund Distributor’ on the BSE StAR MF Platform, please refer our
website www.bseindia.com.

3. Who all can use this new electronic platform?

All mutual fund investors can use this electronic platform of the BSE. This BSE StAR MF Platform
is an additional facility and the existing physical route will continue as before. Individuals, HUF

9
and Corporate Body can participate in StAR MF subject to completing the KYC procedure. In
case of a minor, the guardian would have to be KYC compliant.

4. What is the empanelment procedure of AMC’s for the MFDs?

The MFDs must approach the AMC and get the empanelment/appointment letter. The letter
should be submitted to the Exchange for activation of the Schemes.

5. Does a MFD always have to go through a separate empanelment process each time to
be able to transact on the related schemes?

The BSE would enable the AMC for MFDs under the following circumstances:

1. When BSE receives a confirmation OR an instruction from the AMC for

enabling the particular ARN i.e. MFD for their schemes or;

2. When BSE receives the confirmation letter of AMC, forwarded by MFDs, with
regard to their being appointed / empanelled as a Distributor of their schemes. On
receiving any of the above, the respective MFD is enabled / activated for the specific
AMC. It is only a one-time process for each AMC and does not require to be activated
for each scheme.

6. Can an investor invest in any and all Mutual Fund schemes?

An investor would be able to deal in MF units of only those Mutual funds that have signed up
with BSE {Called participating MFs} for availing this facility. The AMCs would then notify the
schemes that they wish to permit on the BSE platform. All schemes available on this platform as
well as additions or deletions thereto would be informed to the MFDs and investors through
notices.

7. Who does an investor have to contact for availing this facility?

An investor has to simply contact a MFD. He will guide the investor through all the modalities.
The investor can sign up with any MFD who offers this facility of electronic buy / sell of MF units
and commence his investments subject to the easy fulfillment of the KYC norms, etc. that are to
be statutorily followed as laid down by SEBI. He would have to submit his PAN, Bank Account,
Demat Account details to the MFD for Client Registration.

8. What are the days and time of availability of the platform?

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BSE StAR MF is available on all business days of the Equity Cash Market segment. The BSE StAR
MF is open between 9 a.m. and 3 p.m. - however on a need basis such as NFO, etc. it may be
kept open longer after due notice to the market as required by the AMC.

9. Can the investor approach any MFD for placing an order on BSE StAR MF?

As mentioned in SEBI circular CIR/IMD/DSA/32/2013 dated October 4, 2013 only a Mutual Fund
Distributor registered with Association of Mutual Funds in India (AMFI) and who has been
permitted by the BSE shall be eligible to use the exchanges' infrastructure to purchases and
redeem mutual fund units directly from Mutual Fund/Assets Management Companies.

10. What are the basic requirements of Investor/Client registration or how can MFDs
transfer existing clients to online platform?

All MFDs would need to register their clients in the BSE StAR MF and give them a Unique Client
Code (UCC). The client must have a demat account. The facility is available to the MFD to
register the client details. The platform user shall not be allowed to place an order for the client
if registration details of the client are not already available in the system. The MFD can modify
/ delete client registration already maintained subject to certain restrictions. A batch upload
facility is also available to set up client registration.

11. If an investor is already having an existing relationship with a MFD, what is the
additional documentary requirement for BSE StAR MF?

If you are already using the services of a MFD, the MFD would require you to sign up a letter
consenting to participate on BSE StAR MF (optional). Thereafter, you could place a
subscription/redemption order by meeting the requirements applicable for placing such an
order.

12. What are the KYC requirements for a Mutual Fund Investor on BSE StAR MF ?

As per a SEBI circular dated November 13, 2009, where an investor is transacting in the demat
mode i.e. through a beneficiary account, there would be no additional requirement of KYC and
the KYC performed by the DP in terms of SEBI Circular no. 29 dated August 24, 2004, would be
deemed sufficient.

For more details on KYC visit AMFI site: http://www.amfiindia.com/showhtml.aspx?page=kyc

13. Will the MFDs do the Settlement process for the investors?
11
SEBI vide its Circular No. CIR /MRD/DSA/32/2013 dated 4th October, 2013 made it clear that
MF Distributors (MFDs) shall not handle payout and pay in of funds as well as units on behalf of
investors. The pay in will be directly received by ICCL and payout will be directly made to
investor’s account. In the same manner, units shall be credited and debited directly from the
demat account of the investors by ICCL.

14. Should mutual fund units be held in Physical form or Demat form?

SEBI vide its Circular No. CIR/MRD/DSA/32/2013 dated October 4, 2013 states that the investor
units shall be credited and debited directly from the demat account of investors.

15. For the purpose of holding units in Demat account, is there a requirement of opening
a separate demat account?

If an investor already has an existing Demat account for holding of securities, the same account
can be used for holding mutual fund units in Demat form also.

16. When an investor wishes to subscribe for a mutual fund through BSE StAR MF, what
are the details investors needs to give to the MFD for placing the order?

For placing a subscription order, an investor would need to mention the Unique Client Code
assigned to the investor by the MFD and give transaction details such as the name of the
Mutual Fund, Name of the Scheme, the value i.e. money that investor intends investing, mode
of payment, whether his/her subscription is fresh, first time investor for a Mutual Fund scheme
or additional.

17. At the time of placing an order if the MFD makes a mistake in giving details would
they be in a position to correct or modify the order?

Orders can be placed between 9.00 am to 3.00 pm. Within this time period, you would be able
to request your MFD for correction of mistakes if any, including cancellation of order or placing
a fresh order altogether.

18. What is the status of a Subscription Order placed by MFD in the Platform and when is
it confirmed?

All Orders placed in the Platform will be given the status of orders as “Confirmed Orders” as per
the existing process. When the full payment for the order is received by the ICCL from the
investor by 9:30 a.m. on T+1 day, the orders would be further processed.
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19. How will the investor know that the Subscription Order has been placed by MFD on
the Platform?

Immediately after placing of order on BSE StAR MF by MFD, the investor would receive an
email/sms on the registered mobile number and email ID, giving details of Confirmed Order ID,
Value of Order, Bank details for payment.

20. For Subscription orders, how should an investor make the payment?

For Subscription orders, the investor can make the payment in favour of ICCL designated
account through Net Banking/IMPS/RTGS/NEFT.

21. For subscription orders, when should an investor make the payment?

For subscribing to Mutual funds through BSE StAR MF and for order confirmation, an investor
needs to make the payment by 9:30 a.m. on T+1 day in favour of ICCL, for all the valid
transactions in Normal Category that have been submitted on the platform. In L0 and L1
Categories, the investor is responsible for making the payment to the ICCL before 1:20 p.m. for
all the valid transactions.

22. What will be the number of units that an investor would get for the value that they
decide to invest?

For all confirmed orders received in normal category up to 3.00 p.m., Net Asset Value (NAV) of
T day will be the rate at which units would be allotted to the investor. For liquid schemes in L0
Category, the NAV applicability would be T-1 and in Debt/Equity schemes in L1 Category, the
NAV applicability would be T day.

23. When and how will an investor get the credit of units to his/her Demat account?

After closure of order acceptance time, the Exchange would provide details of the Confirmed
Orders to Mutual Fund / AMC / RTA and to the Depository in case of NFOs for validation. After
validation, funds received from the investor for all valid orders would be sent to AMC/RTA.
Thereafter the AMC/Mutual Fund/RTA would process the subscription request and credit ICCL
Pool account for onward transmission of units to investors Demat account. In case of L0
Category, units are credited to the investor on T day.

24. What are the particulars that the investor needs to provide the MFD while placing a
redemption order?
13
At the time of placing the order for redemption in respect of demat units, the investor needs to
mention the Unique Client Code assigned to them by the MFD and give transaction details such
as the name of the Mutual Fund, name of the Scheme, and Number of Units to be redeemed.

25. What is the status of the redemption order placed by MFD on BSE StAR MF and when
is it confirmed?

All Orders placed on BSE StAR MF Platform will be confirmed only when the investor submits
the Delivery Instruction Slip (DIS) for the full units to the DP and then the units are transferred
to the pool account of ICCL.

26. How will the investor know that redemption order has been placed by MFD on BSE
StAR MF?

In case of redemption, immediately after placing of order on BSE StAR MF by MFD, the investor
would receive an email/sms on the registered email ID and mobile number giving details of
order no., no. of units and the demat account no.

27. In case of redemption of units in Demat form, to whom and how should the investor
transfer the units?

In respect of redemption of units in Demat form, the investor should transfer units to the pool
account of Indian Clearing Corporation Ltd. ICCL. He/she should ensure that he/she has given
appropriate delivery instruction to the Depository participant before 4.30 pm.

28. When and how would the investor get redemption proceeds after transferring the
units to ICCL?

ICCL on T + 1 day of confirmed order (T day) at the specified time would transfer units from its
pool account to the concerned AMC/RTA's pool account. Thereafter AMC/RTA would process
the redemption request at Transaction day's NAV. The redemption proceeds received by ICCL
will be directly credited to the investors account by RTGS/NEFT.

29. Are there any restrictions on maximum value or quantity for a single order on BSE
StAR MF?

Individual schemes of AMCs may have certain minimum amount for subscription / redemption
which the system would validate at order entry.

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30. What is the grievance handling mechanism under this platform? Is there any
guarantee provided by the Exchange?

For any application related grievances, the Department of Investor Services of BSE will
intermediate and resolve. However, for any insufficient allotment and related issues, the
investor would need is the respective AMC which is, for all practical purposes, the counter party
for all transactions.

31. How will MFDs know the status of the orders placed by them?

The MFDs will be able to view the status of the orders placed by them in the BSE StAR MF
Platform through various MIS Reports. For Orders that are confirmed, they can print/email the
confirmation note and can send to their clients.

32. When will the orders be cancelled by the Exchange System?

All orders for which funds/units have not been received/partial funds received by ICCL within
T+1 day shall be cancelled automatically by the system at the end of day on T+1.

33. When will partial funds paid by investor be returned?

All the confirmed orders are matched against the complete funds received from the investors.
If the partial amount is received, the orders would be matched on FIFO basis and unmatched
funds would be returned to the investor on T+1 day.

34. How do MFDs receive commission/brokerage payments? Do the AMCs pay the
commission as per the rates communicated or is it lower?

The Brokerage/Commission is paid by AMC/RTA to the Distributor directly and will continue to
do so as per the industry practice.

35. How can MFDs start this platform for investor?

The access to the platform is given to MFDs and not to the investors. However the MFD, an ARN
Holder can enter orders on behalf of their investors.

36. What are the basic infrastructural requirements of MFDs?

15
BSE StAR MFTM is a web browser-based fully automated online MF transaction processing
system. The MFD would need a computer / printer and internet connection to place orders and
print reports/confirmations.

37. How can MFDs place Subscription / Redemption Order in the BSE StAR MF Platform?

For placing subscription / redemption orders the MFDs can either go for Quick Order or Open
MF’s Screen and enter the type of scheme your client requires and other details such as your
client code, demat type etc. and submit the order. The bulk upload facility to upload upload the
bulk subscription/redemption is also available.

38. For any fresh investment through BSE StAR MF platform will MFDs continue to get
feeds from the registrar or will the units reflect in the client demat statement?

The investor will be able to view their investment statement in their demat account/statement.

39. Can we get an API which can be connected with the website?

At present, the system is developed only on web portal. Yes, going forward, we may provide
the API.

40. What are the costs involved to the distributor and the investor- Transaction Cost and
Holding Cost?
There is no cost for the distributor as well to the investor.

You can also go to www.bseindia.com or www.sebi.gov.in for FAQs related to Mutual Fund
Order routing through Stock Exchanges platform.

For any queries related to operations / process please do mail us at

mutual.funds@bseindia.com

Thank you

Very much

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 for your interest.

Welcome On board BSE StAR MF

October 2013

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