FAQs on e-ETF
Exchange has introduced a facility for the investment and subscription of ETF’s using the “e-ETF” facility under web based E-IPO platform (the “Platform”).
All trading members of the capital market segment having valid ARN are eligible to access the e-ETF facility.
ARN refers to AMFI Registration Number. ARN is a code that is allotted by Association of Mutual Fund of India (AMFI) to a qualified mutual fund distributor or an expert who can use it to trade in various mutual funds schemes.
Trading members already having access to the web based NSE E-IPO bidding platform can use their existing user ids for accessing ‘e-ETF’ facility under the tab ‘Misc’ in the platform for participating in ETF subscription.
Members desirous of using e-ETF facility and not having Admin user of e-IPO platform shall approach Exchange through ENIT member portal. Members are requested to raise a request for login details on ENIT member portal. On logging in as Admin User, members shall be presented with the Electronic Undertaking for the ‘e-ETF’ facility under the tab ‘Misc’. Members will be required to accept this undertaking by clicking on ‘I Accept Terms & Conditions’ button.
Members will have to log in to the Admin User and create required branches and Users (if not created earlier) to participate in the subscription. After completing this process, members shall be able to enter subscription requests from a User login.
Participants can enter the applicant/subscription details from order entry panel and/or from bulk upload facility. Only Depository Mode shall be available.
Modification & Cancellation of subscription/application shall be allowed only on the day of entry till the subscription hours and as specified by the Exchange from time to time.
The subscription hours for ETF Units shall be from 10:00 am to 5:00 pm during the subscription period or as may be specified/extended by NSEIL from time to time.
Subscriptions on the Platform shall be based on application amounts, or as may be otherwise specified by the Asset Management Companies (“AMC”) issuing the ETF Units, or its Registrar and Transfer Agent (“RTA”), in accordance with the scheme information/offer document. The AMC/RTA shall be solely responsible for allotment, determination of allotment price and refund of subscription amount (if any) in relation to any Offer. The details and terms of any Offer shall be as specified by the Government of India/the Securities and Exchange Board of India /Association of Mutual Funds of India/the AMC from time to time.
The minimum & maximum subscription amounts shall be as specified by NSEIL/the AMC from time to time.
Bids for subscriptions for ETF Units on the Platform can be placed by clients/person(s) holding Demat accounts in single or joint names. However, the applicant(s) should provide the name and PAN of the person whose name appears first in the depository account during subscription/application entry. The joint holder(s) of such demat accounts, if any, would be deemed to have subscribed to the units of the ETF. Currently IND, NRI,HUF,CO,NOH and OTH categories are allowed on e-ETF Platform.
If the subscriptions/applications are rejected on issue close date due to depository validation, for such subscription/applications only a limited modification facility shall be provided on the Platform on subscription close date post depository validation or as may be specified/extended by NSEIL from time to time. From the Demat details provided by the Participants, the AMC/RTA will extract relevant information of clients from depositories, for allotment & refund (if any) purpose. For all future procedures, information available with demat account will be used.
For queries on allotment/refund status the Participants are requested to contact respective AMC/RTA. NSEIL shall not be involved in any disputes or queries related to the allotment or refund.
For detailed procedure for subscription/application, fund collection, and remittance members/participants can refer to the operating guidelines for e-ETF and terms and conditions governing e-ETF issued by the exchange from time to time. Kindly refer to Exchange circular no 24/2018 (Download reference No. NSE/IPO/39445) dated 20, November 2018 for operating guidelines.
“This document/FAQ has been drafted in order to ease Member’s/reader’s understanding of the subject matter. The information and/ or content (collectively ‘Information’) provided herein is general information only and NSE has issued detailed circulars to that effect from time to time, While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by NSE as to its accuracy or completeness and NSE, its affiliates and subsidiaries accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. The readers are expected to undertake their own diligence and are advised not to solely rely on this document. Any such reliance shall be at the reader’s own risk. Nothing stated herein shall bind NSE, in any manner whatsoever.”