Under this system, the NSE offers a mechanism for collection of orders from the exchange's terminal with the NSCCL undertaking to clear and settle the trades.

Zurich Mutual Fund (ZMF) has already signed up with the NSE. All the 12 schemes of ZMF are available under MFSS. Thirty-four NSE members have already signed up for availing of this facility. Others like IDBI-Principal and Sun F&C are also in talk with the NSE. The mutual fund industry can tap the NSE network, which is spread across 380 centres. It is also the most cost-effective manner in which mutual fund industry can avail of the distribution network spread across the nation.Currently, the buying and redeeming of mutual fund units takes place manually between the investor and the mutual fund.

The NSE said the spot book of the NEAT-IPO system would be adopted for collection of orders for initial offer/sale/redemption/repurchase of units by investors. The orders collected by the NEAT-IPO system would be received by NSCCL and conveyed to MFs to facilitate computation of net asset values and corresponding sale/repurchase prices of the units.

The MFs would send the computed repurchase prices to NSCCL next day. The orders would be cleared and settled on a trade to trade basis with the settlment taking place on rolling basis of T+5 days. The members are required to deliver securities/funds to the investors within two working days of receiving the pay-out from the NSCCL and no trasaction charges would be levied on members, it said. All the schemes would be settled in dematerialised mode only.