1. About NMF II
2. Access to NMF II Platform
2.1 Who can get access to NMF II platform?
NMF II platform can be accessed by distributors and trading members. All trading
members and distributors having valid registration with AMFI can transact on NMF
II platform.
The distributors have to obtain limited purpose membership with the Exchange for
transacting in mutual funds on NMF II platform.
2.2 Are all the trading members of the Exchange automatically eligible for accessing
NMF II?
All trading members of the Exchange who are already enabled on the MFSS platform
of the Exchange are automatically eligible for accessing NMF II platform. All other
trading members will have to apply for enablement on the NMF II platform.
2.3 Who can obtain limited purpose membership for accessing NMF II?
Individuals, partnership firms, corporate entities, banks and all other entities
granted registration by AMFI can apply for limited purpose membership for accessing
NMF II.
2.4 What are the eligibility conditions for obtaining limited purpose membership?
The eligibility conditions for obtaining limited purpose membership for accessing
NMF II are:
- Registration with AMFI having valid ARN.
- Consent for abiding by code of conduct defined by AMFI for distribution of mutual
fund.
2.5 Should the application for limited membership be made in any standard format
and what are the documents to be submitted along with application?
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.
2.6 Are there any charges for getting limited purpose membership of the Exchange?
NMF II platform is being launched for the first time for distributors and hence
up to March 31, 2015 there are no charges for getting limited membership of the
Exchange. However, a refundable deposit of Rs. 15,000/- is payable by individuals/partnership
firms while a refundable deposit of Rs.25,000/- is payable by corporate applicants.
With effect from April 01, 2015, in addition to the refundable deposit, NSE would
charge a processing fee of Rs. 2,500/- on every application received and a renewal
fee of Rs. 2,000/- p.a. (which is required to be paid at the time of renewal of
limited purpose membership on a yearly basis).
2.7 On admission as limited member, would any certificate or authentication issued
by Exchange or SEBI?
On granting of limited membership to access NMF II 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.
3. Enablement Process
3.1 What is the process to access the NMF II platform?
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
II platform. All other trading members will have to apply for enablement on the
NMF II 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 deposits 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.
User creation and management during enablement
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.
Functions
|
Data Entry User
|
Super User
|
Branch User
|
Zone
|
Cluster
|
Corporate
|
Create Sub User
|
NO
|
YES
|
YES
|
YES
|
YES
|
YES
|
Create Customer
|
NO
|
YES
|
YES
|
YES
|
YES
|
YES
|
KYC Status
|
YES
|
YES
|
YES
|
YES
|
YES
|
YES
|
Enquiry
|
YES
|
YES
|
YES
|
YES
|
YES
|
YES
|
Portfolio Statement
|
NO
|
YES
|
YES
|
YES
|
YES
|
YES
|
Purchase
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Redemption
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Switch
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Systematic Registration
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Systematic Ceasure
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Manage Transaction
|
NO
|
YES
|
YES
|
YES
|
YES
|
YES
|
Transaction Status
|
YES
|
YES
|
YES
|
YES
|
YES
|
YES
|
Investor Transaction Status
|
YES
|
YES
|
YES
|
YES
|
YES
|
YES
|
Transaction Import
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Transaction Import
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Non-Financial Request
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
NFT Packing List
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
NFT Packing List Scan
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
NFT Transaction History
|
YES
|
YES
|
YES
|
YES
|
YES
|
YES
|
Transaction Listing
|
NO
|
YES
|
YES
|
YES
|
YES
|
YES
|
EOD Report
|
YES
|
YES
|
YES
|
YES
|
YES
|
YES
|
Systematic Registration Report
|
YES
|
YES
|
YES
|
YES
|
YES
|
YES
|
Systematic Ceasure Report
|
YES
|
YES
|
YES
|
YES
|
YES
|
YES
|
Packing List
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Generate Payin-slip
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Transaction slip
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Payin Slip
|
YES
|
YES
|
YES
|
NO
|
NO
|
NO
|
Change Password
|
YES
|
YES
|
YES
|
YES
|
YES
|
YES
|
Upload Logo
|
NO
|
YES
|
YES
|
YES
|
YES
|
YES
|
Family Wrap Creation
|
NO
|
YES
|
YES
|
NO
|
NO
|
NO
|
Family Wrap ID Status
|
NO
|
YES
|
YES
|
NO
|
NO
|
NO
|
Family Portfolio Statement
|
NO
|
YES
|
YES
|
YES
|
YES
|
YES
|
3.2 What is the procedure in case access of the platform is required to be given
across different branches of the member / distributor?
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.)
brok_dlr_code
|
branch_code
|
cluster_code
|
zone_code
|
region_code
|
ARN-1234
|
Bandra
|
Mumbai
|
West
|
West
|
ARN-1234
|
Andheri
|
Mumbai
|
West
|
West
|
ARN-1234
|
Fort
|
Mumbai
|
West
|
West
|
ARN-1234
|
Thane
|
Mumbai
|
West
|
West
|
ARN-1234
|
Vashi
|
Mumbai
|
West
|
West
|
ARN-1234
|
Nagpur
|
Mumbai
|
West
|
West
|
ARN-1234
|
Pune
|
Mumbai
|
West
|
West
|
ARN-1234
|
Nasik
|
Mumbai
|
West
|
West
|
ARN-1234
|
Indore
|
Indore
|
West
|
West
|
ARN-1234
|
Baroda
|
Gujarat
|
West
|
West
|
ARN-1234
|
Surat
|
Gujarat
|
West
|
West
|
3.3 What facilities are available for the members / distributors on the platform?
NMF II platform facilitates following activities:-
- Creation of user ids for branches, sub-agents, employees
- Registration of client
- Check KYC status of investor
- Facility to enquire about investor’s transaction / Product summary
- Generating portfolio statement
- 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).
3.4 What is the procedure to onboard clients on the platform?
The distributor will have the provision to register clients / investors on the platform.
The registration can be done entry wise i.e. single entry one at a time or through
a bulk upload facility. Post registration of client on the platform an investor
registration form is generated which needs to be signed by the client and is required
to be submitted to NSE service centre long with a cancelled cheque (for account
no provided during IIN registration). The investor shall be enabled for transacting
on the platform only when the investor registration form along with cancelled cheque
is received at the service centre.
3.5 Can an investor have multiple registrations on the platform?
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.
3.6 Can an investor transact on this platform through more than 1 distributor?
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 II platform.
3.7 Will investors be allowed to access the NMF II 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 II platform.
3.8 What facilities will investor have on the NMF II platform?
The NMF II platform facilitates the investors to do the following:-
- Check KYC status
- Facility to enquire about investor’s transaction / Product summary
- Generating Portfolio statement
- 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
4. Transaction Process
4.1 What types of transactions are supported on the NMFII platform?
NMF II platform supports financial transactions such as:
- Purchase (NFOs, fresh purchase, additional subscription)
- Redemptions
- Systematic Transactions
- Switch Transactions
4.2 Are all transactions available in distributor login as well as investor login?
The distributor shall be able to execute all transactions as mentioned in 4.1 above
through his login. The investor login shall support all transactions listed above
except for Systematic transactions and redemption of units held in demat form shall
not be allowed through the platform.
4.3 What type of non financial information updations is facilitated through the
platform?
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.
4.4 What is a mandatory pre-requisite for entering a transaction on the platform?
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.
4.5 Can only demat transactions be executed on the NMF II platform?
NMF II platform supports both type of transactions i.e. demat as well as non demat.
4.6 Is any physical flow of paper involved to conclude transactions executed on
NMF II platform?
For all transactions where the mode of acceptance of transaction is in person and
in case of cheque transactions, the distributor has to submit the transaction slip
signed by the investor at service centre along with day’s packing list by 5.00 PM.
However in case of online transactions no physical document is required to be submitted
by the investor or distributor.
4.7 What documents are required to be submitted in case of Systematic Registration
transactions?
For systematic registration transactions, ACH debit mandate form along with cancelled
cheque (in case of new folio) and transaction slip is required to be submitted at
service centre by 5.00 pm. However, in case of SIP registration in existing folio
there is no requirement to submit cancelled cheque, submission of only an ACH debit
mandate form along with transaction slip shall suffice.
4.8 In case of cheque transactions the cheque has to drawn in which name?
In case of cheque transactions the payment shall be drawn in favour of “ National
Securities Clearing Corporation Ltd “ and made payable at Mumbai.
4.9 What are the different modes of making payment available to the investor?
NMF II supports payment of subscription amount by cheque, demand draft, online payment
through RTGS/ NEFT, internet banking and debit card.
4.10 How many banks are enabled for online payment?
Currently, 52 banks are enabled for online payment which shall be increased over
a period of time.
4.11 In case of online payments what is the process?
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 has to register NSCCL account in beneficiary
list first to make the payment.
4.12 The online payment link is valid till when?
The online payment link is valid for 24 hours only and on expiry of same, a fresh
transaction is required to be entered.
4.13 Can Investor make online payment from only his account registered on the platform
or any other account also?
The investor can make online payment only through his account registered on the
platform at the time of investor creation.
4.14 In case of online payment when are the funds credited to AMC account for NAV
allotment?
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.
4.15 What is the process of NAV applicability?
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.
4.16 What will be cut-off time for order entry and cheque deposit in case of cheque
transactions?
Cheque Transactions
Scheme
|
Subscription Amount
|
Cheque Criteria
|
Order Entry Time (T-day)
|
Cheque Deposit Cut off Time (T-day)
|
Liquid
|
Any
|
HDFC Bank
|
Before 11.30 AM
|
Before 3 PM
|
Non HDFC Bank
|
Before 3 PM
|
5 PM
|
Non-Liquid
|
Less than INR 2 lakh
|
Any Bank
|
Before 3 PM
|
5 PM
|
More than INR 2 lakh
|
HDFC Bank
|
Before 11.30 AM
|
12.30 PM
|
Non HDFC Bank
|
Before 3 PM
|
5 PM
|
4.17 When will amount be received by investors in case of Redemptions?
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 Scheme Settlement calendar.
4.18 How does the redemption happen when the investor registers with multiple bank
accounts? Where do the proceeds get credited?
The investor can specify bank account (from the list of registered bank accounts
of the investor) for the credit of redemption proceeds. In case no specific bank
account is mentioned or the bank account specified is not a registered account number,
the redemption amount will be credited to the default registered bank account with
RTA. The redemption amount will be credited to the requested bank account only if
it is available as a part of the investor bank account master maintained with the
RTA.
4.19 Whether investor can submit single cheque for multiple orders submitted either
for the same mutual fund or across mutual funds?
Transactions on NMF II 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.
4.20 Does Platform support switch transaction between AMCs?
To start with the platform will support switch transactions only within the same
AMC which shall be upgraded to introduce switch between AMCs.
4.21 How is systematic investment transaction incorporated on the platform?
To execute systematic investment transaction on the platform, in case of existing
folio, purchase option can be used wherein the type of transaction has to be selected
as systematic. However, in case of new folio the “Systematic Registration” option
has to be selected under the transaction screen.
4.22 What is “manage transactions” option on the platform used for?
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.
4.23 How does the distributor/ member or investor know the status of their transaction?
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.
4.24 Bulk upload facility is available on the platform for what all purposes?
Bulk upload facility is available for following:
Investor creation
Execution of financial transaction
4.25 What are the reports that the member /distributor can generate in the platform?
The platform will provide all key investor statements like the:
- Portfolio statement
- Family wrap statement
- Transaction account summary
- Transaction account statement
These statements can be generated daily or for specified period. This will facilitate
distributor to service the investors from their desk.
4.26 Is any historic data pertaining to client investments made available on the
platform?
Member / distributor login: - All client holdings, demat and non demat invested
through the distributor shall be available on the platform on registration of the
investor on the platform.
Investor login: - The investor shall have a consolidated view of his investments
made through different distributors, provided all those distributors register on
the platform.
Note: In case the investor is affiliated with more than one distributor, the investment
details of investor done through one distributor cannot be viewed by another distributor.
4.27 Is there any provision to receive mail back reports on the platform?
Yes, the distributor will register the platform mail Id with all the RTAs to receive
the mail back reports by the facilitation center for necessary updates in the NMF
II platform. This step will ensure auto update of the distributor’s client portfolio
data by the NMF II platform without any intervention by the distributor. On successful
auto-update all the required information such as portfolio balance, investor information
will be readily available in the enquiry screen.
4.28 What is the process to redeem units held in demat form through the NMF II platform?
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.
4.29 Are they any restrictions on maximum or minimum value or quantity for a single
order on NMF II platform?
The restrictions in terms of minimum amount or maximum amount as specified by AMC
shall apply, there are no platform level restrictions.
4.30 What will be the process in case an investor submits multiple purchase requests
through a single cheque and one of the transactions gets rejected?
In case of multiple transactions through a single cheque if one of the transactions
is rejected, the rejected transaction shall be identified through reconciliation
process and status for that shall be updated on platform and partial refund process
in investor account shall be initiated.
4.31 Does Exchange facilitate disbursement of commission / brokerage to members
/ distributors?
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.
4.32 Once a transaction is submitted on the platform, is there any scope for cancellation
of the same.
No, once a transaction is submitted on the platform it cannot be cancelled.
5. Benefits of Platform - Members / Distributors and investors
6. Service Centres
The list of service centers is available on www.nsemfsimplified.com/contact us.
7. Contact Details