Leading stock exchange BSE today said it has introduced a paperless SIP facility for mutual fund investors, a move that will drastically cut the registration time and also allow subscribers to transact through different payment modes including net banking.
As there will be no requirement of filling physical forms under the new facility, the chances of errors that presently result in rejection of many applications will also not exist.
BSE has introduced iSIP, which will help the investors to set up a form of SIP (Systematic Investment Plan) without involvement of any documentation, the exchange said in a circular.
“…simulation environment has been made available for the new functionalities,” it added.
The new feature, which would be available through BSE StAR MF, would allow mutual fund distributors to register SIPs for their clients who can pay SIP amounts through various modes including net banking.
So far, MF distributors have the option to register only Exchange SIP (XSIP) for their clients which allows for ECS (electronic clearing service) payment route.
Under the paperless SIP facility, the investors would receive an e-mail for all the payment modes, including direct pay, nodal account, one time mandate and cheque, after the SIP.
SIP is an investment vehicle that allows investors to invest in small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.