Securities and Exchange Board of India has allowed the mutual fund distributors to use the Exchange infrastructure for facilitating mutual fund transactions for their clients. In order to allow distributors and members of the Exchange to access our infrastructure, for executing mutual fund transactions, NSE has developed an online platform NMF. This is an online platform which facilitates subscription, redemption, Systematic Investment Plan (SIP), Systematic Withdrawal Plan (SWP), Systematic Transfer Plan (STP), Switch and other transactions of mutual fund units.

SEBI had allowed use of Exchange infrastructure by members of the Exchange for transacting in mutual fund. NSE had launched the MFSS platform for facilitating mutual fund transactions by its members. Subsequently, SEBI in October 2013 allowed use of Exchange infrastructure by distributors. NMF is a platform for facilitating transactions in mutual fund by distributors. At present, MFSS and NMF are different platforms. At a later stage, once all the key features of MFSS are made available in NMF, the MFSS platform may get merged into the new NMF.

NMF is a web application and it can be accessed online from anywhere using a standard internet connection.

NMF platform can be accessed by distributors and trading members. All trading members and distributors having valid registration with AMFI can transact on NMF platform.

The distributors have to obtain limited purpose membership with the Exchange for transacting in mutual funds on NMF platform.

Individuals, HUF, partnership firms, corporate entities, banks and all other entities granted registration by AMFI can apply for limited purpose membership for accessing NMF.

The eligibility conditions for obtaining limited purpose membership for accessing NMF are:

• Registration with AMFI having valid ARN.
• Consent for abiding by code of conduct defined by AMFI for distribution of mutual fund.

For obtaining limited membership of the Exchange to transact in Mutual Fund schemes the applicant has to submit below given documents:

• Application Form – Annexure 1
• Undertaking to be submitted Mutual Fund distributor – Annexure 2
• Certified true copy of ARN certificates
• Certified true copy of PAN Card
• Board Resolution in case of Corporates,Banks,institutions.
  • Mandate Form – 3
  • AMC empanelment declaration – 3B
• Authorised Signatory List
• Partnership Deed in case of Partnership
• LLP Deed in case of a LLP and Trust Deed in case of a Trust

Currently there are no charges levied for limited purpose membership of the Exchange

On granting of limited membership to access NMF platform, NSE would issue a certificate containing details of membership. Distributor would be required to display the certificate so issued at all the centers from where the customers are getting serviced.

Trading Members - All trading members of the Exchange who are already enabled on the MFSS platform of the Exchange are automatically eligible for accessing NMF platform. All other trading members will have to apply for enablement on the NMF platform.

Distributors – Distributors have to submit an application form and undertaking to the Exchange along with certified true copy of ARN certificates and PAN Card along with requisite documents to the Exchange for obtaining limited purpose membership. Once the Exchange grants him such membership, the distributor shall be enabled on the Exchange MF platform. Also refer Point 2.5 for the requisite documents

Exchange will issue a Super User login and password to the member/distributor to access the platform. The member / distributor can create user ids for his employees, agents through the Super User login issued to them. The platform facilitates creation of different types of users with varying rights and privileges. The below given table states rights and privileges for various types of users.

In case of members/ distributors having multiple branches, they have to submit the details of their branches in below given format to the Exchange for creation of branches in the system. Post creation of branches in the system by the Exchange, member / distributor can create users under respective branches. (The below given table is a dummy branch creation request provided for understanding.)

NMF platform facilitates following activities:-

• Creation of user ids for branches, sub-agents, employees
• Registration of client
• Registering eKYC and checking KYC for investor
• Facility to enquire about investor’s transaction / Product summary
• e-mandates
• Creation of a family wrap i.e. clubbing of family accounts in a single login.
• Incorporating financial transactions
• Updating non financial information
• White labeling of reports to investors.
• Generation of reports (Transaction listing, EOD Report, Packing List, Systematic Reg report and ceasure report).

The distributor has a provision to register the investor online in 2 ways:- single entry one at a time and through bulk upload facility. Post the IIN is created, for individual category investor will get a mail and SMS for approving the link where account opening form is signed digitally with link approval and in case of non-individual investor, the account opening form needs to be signed and sealed along with supporting documents as per the Tax status. For the IIN activation we do a penny drop to validate the bank account added in the IIN to auto validate the same. In case of Penny drop failure, we validate the bank via a bank proof. As a result, the IIN gets activated only on the bank validation and IIN link validation for individual category and for non-individual category clients, post upload of documents provided.

The investor can register on this platform only once i.e. he will have a unique registration on this platform The investor registration is a combination of his PAN number and mode of holding, accordingly, an investor can have only one registration on this platform based on his PAN + mode of holding.

Yes, an investor can transact with multiple distributors on this platform. In case of an already registered investor, he needs to provide his unique identification number (IIN) to the distributors for transacting on the NMF platform.

The distributors can grant online transactional rights to their clients at the time of registration. While registering an investor if the distributor has availed online mode of transaction for a client, the client will receive his login id and password for NMF platform.

The NMF platform facilitates the investors to do the following:-

• Check KYC status
• Facility to enquire about investor’s transaction / Product summary
• To incorporate financial transactions on the platform i.e. Purchase, redemption (non demat only), switch
• To view the transaction status
• To Generate reports i.e. Transaction listing, EOD report, View Broker

NMF platform supports financial transactions such as:

• Purchase (NFOs, fresh purchase, additional subscription)
• Redemptions
• Systematic Transactions (SIP, STP & SWP)
• Switch Transactions

Non Financial information updation is facilitated for:-

• Change in Name
• Change in Address
• Change of Broker
• Change of Dividend payout option
• Change of Redemption payout option
• Change of Tax status
• Consolidation of Folios
• Lien Marked
• Lien Removed
• NFO Trades reject
• PAN Change
• Registration of nominee

The platform has a provision to enter details pertaining to non financial information updations on the platform; however the request for updations of non financial information along with relevant documents has to be submitted at the service centre for onward submission to RTAs. Investor login does not have provision for updation of non financial information.

The investor has to be KYC compliant to be able to transact on the platform. For all new investors with fresh KYC, for whom the KYC status is not verified or submitted (as reflected on the KRA system which is separate from MF platform), the distributor shall do the initial due diligence / In-person verification and upload the KYC information and supporting scanned documents on the KRA system directly. KRA shall process the KYC application, verify documents and provide the KYC acknowledgement to the investor. The investor will be eligible to invest subsequent to the receipt of the KYC acknowledgement from the KRA, Further if KYC status shows registered on KRA website then MFD can proceed.

NMF supports all types of Non Demat transactions and only subscription transactions in demat mode

For SIP (Systematic Investment Plan) registrations, completely filled and signed ACH debit mandate form needs to be uploaded in the NSE Portal. In case of E-mandate SIPs, no additional documents required. For STP (Systematic Transfer Plan) and SWP (Systematic Withdrawal Plan) no documents are required. Registration can be only done in the existing folios.

In case of cheque transactions the payment shall be drawn in favour of “ NSE Clearing – New Mutual Fund Platform “ and made payable at Mumbai.

NMF supports payment of subscription amount by cheque, demand draft, online payment through RTGS/ NEFT, internet banking and UPI.

Currently, 39 banks are enabled for online payment which shall be increased over a period of time.

In case of online payments through net banking the member / distributor can enter the order on the platform on behalf of the investor and forward payment link to the investor to make payment through his login. Alternatively the investor can initiate the transaction from his login and make payment from his net banking. In case of RTGS / NEFT transactions the investor must register Virtual Account No. to make the payment.
Process of Virtual Account

The online payment link is valid for 48 hours and the transaction is valid for 5 days.

The investor can make online payment through all the banks registered under said IIN on the platform

For online payments in case of all banks except HDFC the credit will be received on T+1 basis. In case of HDFC bank the credit will be received on T day.

Effective Feb 01, 2021, as per SEBI circular dated Sept 17, 2020, the applicable NAV in respect of purchase of units of mutual fund scheme shall be subject to realization and availability of the funds in the bank account of mutual fund before the applicable cut off timings for purchase transactions, irrespective of the amount of investment, under ALL mutual fund schemes.

The cut-off time for all transactions are as under:

For redemption orders placed through the MF platform on T-day before 3 pm the funds will be credited in the investor account as per the settlement timelines mentioned in the scheme.

Redemption credit goes to Bank account which is registered with AMC in the specific folio.

Transactions on NMF platform are spread between normal transactions and systematic transactions. The investor can submit single cheque for multiple investments across AMCSs for normal transactions and similarly the investor can submit a separate cheque for multiple investments across AMCs for systematic transactions. Investor can submit single cheque for 10 regular schemes. For NFO, one separate cheque is required for every single NFO investment.

To start with the platform will support switch transactions only within the same AMC which shall be upgraded to introduce switch between AMCs.

To execute systematic investment transaction on the platform, in case of existing folio, Systematic Registration must be selected in transaction menu. However, in case of new folio the Purchase option must selected in transaction menu and the type of transaction has to be selected as systematic for "purchase cum SIP"

In case of maker/ checker arrangement, the manage transactions options lists transactions pending for authorization by the checker, which can be either approved or rejected by the checker.

The transaction status option under the transaction tab will show the status of transactions executed on the platform by the distributor i.e. transaction is completed or not and if pending it is at which stage. The member / distributor can also enquire on status of transactions entered by the investors through a tab investor transaction status, for investors mapped under him.The status is also available in the transaction detailed report

Bulk upload facility is available for following:
Investor creation
Execution of financial transaction
FATCA
ACH

The platform will provide all key investor statements like the:

• Transaction detailed report
• Systematic Registration report
• SIP pause Report
• ACH mandate registration report

These statements can be generated daily or for specified period. This will facilitate distributor to service the investors from their desk.

Yes, the distributor will maintain the uniform email id across all channels to receive the mail back reports for necessary updates in the NMF platform. The mail back report pertaining to the transactions placed through NSE MF platform would only be available in his login.

In case of redemption of units held in demat form, the investor needs to submit a redemption request slip to the depository participant. On submission of redemption request slip depository participant shall do extinguishment of units and transfer proceeds in account inked to the demat account of the investor and no request flows to the distributor.

The restrictions in terms of minimum amount or maximum amount as specified by AMC shall apply, there are no platform level restrictions.

In case of multiple transactions through a single cheque, if one of the transactions is rejected, the amount will be refunded by the respective AMC to the investor directly. The other transactions would get processed by the respective AMCs.

Exchange does not facilitate disbursements of commissions to members or brokers, the commission is paid by AMC/RTA to members/ distributors directly as per the industry practice.

Before transaction (purchase, redemption and switch) is approved by the investor it can be cancelled by the MFD.

The features available on NMF platform are:-

• Multiple transactions through single cheque or single fund transfer.
• Multiple modes to make payment i.e. cheque, net banking, RTGS/NEFT, UPI.
• Demat as well as non demat transactions facilitated through the platform.
• Access to investor KYC through the platform.
• Real time tracking of order status.
• Sms / email intimation to the investors.
• Mail reports from RTA, facilitated on platform.
• Facility of Purchase, redemptions, Switch/SIP/SWP/STP available on the platform.
• Register eKYC through the platform

• Digital client onboarding made easy.
• E-Mandate registration through net banking/debit card.
• Multiple banks registration with various payment options.
• Ease of transactions (Purchase, Redemption,Switch, SIP, SWP, STP, NFO & SGB).
• Transact in the special products of AMCs like SIP Step-Up, SIP Top-Up etc.
• Real-time tracking of transaction status
• Transaction Reports & MIS.