The online trading platform for mutual funds (MF), planned by the Association of Mutual Funds in India (Amfi), may get delayed owing to the launch of MF trading by both the National Stock Exchange and Bombay Stock Exchange.
While mutual fund schemes have been trading on the NSE since November 30, the BSE launched the initiative in early December. Amfi?s online platform was to have got off the ground sometime in March next year. The decision to delay the platform is understood to have been taken at the meeting held last week Jaideep Bhattacharya, chief marketing officer of UTI Mutual Fund and chairman of the panel constituted to set up the trading platform, said, ?We discussed the issue at length. Originally, the idea had been to launch a trading platform to enable investors to trade. However, with both the BSE and the NSE having started trading in mutual fund units, we might need to make some changes in our platform.?
However, according to some members present at the meeting, it?s possible Amfi might altogether scrap the idea of its own trading system. Bhattacharya didn?t comment on this issue but said a proposal had been submitted to Amfi which would decide the future course of action. ?If they suggest that we incorporate some value-added services, we will revisit the idea because the circumstances have changed,? he added.
Amfi chairman AP Kurian said, ?It will take some more time and we?ll announce the launch once everything is in place.? Currently, there are nine asset management companies whose schemes are trading on the NSE platform while seven funds are listed on the BSE?s platform. According to figures provided by the BSE, total turnover in the mutual fund segment on Friday was close Rs 53 lakh with 15 orders ? 12 for subscription and other three for redemption.
On the NSE, there were 11 orders placed on Friday with all the 11 for subscription with total turnover being approximately Rs 56 lakh. Achal Kumar Gupta, managing director, SBI Mutual Funds, said, ?It looks like there will be tough competition when other online platforms also get launched. But I think if we have several platforms to trade in mutual funds, it will finally benefit the investor.?