About Mutual Fund Service System (MFSS)
Now the buying and selling of mutual fund have become easier for investors.
An investor who wishes to subscribe or redeem units of a mutual fund scheme can now use Mutual Fund Service System (MFSS) provided by NSE.
This service has been launched on November 30, 2009 at the hands of Mr C B Bhave, Chairman, Securities Exchange Board of India (SEBI), on November 30, 2009.
Mutual Fund Service System
Mutual Fund Service System (MFSS) is an online order collection system provided by NSE to its eligible members for placing subscription or redemption orders on the MFSS based on orders received from the investors.
The MFSS will be available for Participants between 9 a.m. to 3 p.m.
The NSE MFSS shall facilitate entry of both buy and sell orders. In order to subscribe units, member will be required to place buy orders. A member who wishes to redeem units of mutual fund scheme will be required to place sell orders in the system. Participants can choose between Physical mode and depository mode while putting their subscription / redemption requests on the MFSS. All orders shall be settled on order to order basis, on T+1 (working days).
Individuals, HUF and Body Corporate can participate in MFSS subject to completing the KYC procedure. In case of a minor the guardian would have to be KYC compliant.
Confirmation of order
The system will generate an order confirmation slip for each order which includes time stamp of the order being put on the system, on behalf of the investor. The order confirmation slip which is generated by the system shall be given to the investor by the member and is the conclusive evidence of the transaction.
Eligibility criteria for Members
Trading Members of NSE who have obtained AMFI Registration Number (ARN) from Association of Mutual Funds of India (AMFI) are eligible to participate in MFSS. Further, eligible members would have to register as distributor with the Mutual Fund Company. Hence, eligible members would be able to place orders only in respect of Mutual Fund Companies where they have registered as distributor.