The Bombay Stock Exchange on Tuesday launched eKYC service on its StAR mutual fund platform. The move is expected to weed out the challenges being faced currently whilst onboarding new investors.
The Bombay Stock Exchange on Tuesday launched eKYC service on its StAR Mutual Fund platform. The move is expected to weed out the challenges being faced during the lockdown period whilst onboarding new investors. In a press release the BSE said that the eKYC will be done through Aadhaar and video-based investor onboarding solutions. The eKYC service will provide investors with digital verification of KYC documents and real-time approval in case of successful verification of all IDs and documents, BSE said. Spelling out the features of the new KYC process, BSE said that it will be user friendly and integrated with the KRA systems.
“BSE StAR MF is the first MF platform to enable eKYC, which will go a long way in improving the experience of onboarding investors in a seamless manner. It will simplify the KYC process and improve the TAT for completing it,” Ganesh Ram, Business Head – Mutual Funds, BSE said. BSE said that it also plans to provide the eKYC services to stockbrokers and the other approved intermediaries in the near future for which it will issue APIs for stockbrokers and other intermediaries to connect their IT systems to BSE’s eKYC system.
BSE is aiming to improve operational efficiency by reducing error prone and time-consuming human efforts while also hoping to reduce the investor acquisition cost. BSE’s StAR MF contributed Rs 56,000 crore in net equity inflows during the previous fiscal year, translating to 66% of the Industry Net Equity Inflow, according to the exchange. In April 2020, BSE StAR MF contributed 61% in net equity inflow or Rs.3,806 crore out of the industry’s total of Rs.6,212 crore.
The Bombay Stock Exchange — which also provides the S&P BSE Sensex index — runs the dedicated MF distribution platform BSE StAR MF which is India’s Largest Mutual Funds Distribution Infrastructure with an annual turnover of Rs 2 lakh crore. BSE Ltd, ended the day’s trading session down by 2.6% at Rs 386 per share on the national stock exchange.