Knowledge Centre

FAQs On Online Mutual Funds

What is Online Mutual Fund Platform?

Online Mutual Fund Platform is an online order routing system provided by Exchanges to us for placing subscription or redemption orders received from Investors like you.

How is Online Mutual Fund Platform different from existing process for subscription to & redemption of mutual funds?

Earlier, if you were interested in subscribing/redeeming a mutual fund you would have to identify a distributor of the mutual fund & submit all relevant documents along with the payment instrument.

In Online Mutual Fund Platform, you would have an opportunity to deal with us for subscription/redemption of units. We would enter your order & you would be able to modify, & delete your order details up to 2.30 pm i.e. when the order acceptance time ends. By the end of the day you would also get to know about the validity of your order & the value at which the units would get credited/redeemed to your account.

What are the benefits of using Online Mutual Fund Platform for participation in mutual funds?

  • You would be able to get a single view of your portfolio across multiple assets like Securities, Mutual Fund units etc.
  • You would be able to get services from us for different asset class
  • You would be able to execute faster funds transactions leading to prudent investment decisions.
  • Your voice would have a say in mutually agreeing on charges to be paid for services rendered by us.
  • Reduction of paperwork
  • Transparency in knowing status of your order till completion thereby reducing disputes in complete order cycle.
  • You can avail recourse to the grievance resolution cell of exchanges in case of deficiency in service provided by us.

Who all can & are eligible to participate in Online Mutual Fund Platform?

Individuals, HUF & Body Corporates can participate in Online Mutual Fund Platform subject to completion of KYC procedures. In case of a minor the guardian would have to be compliant with KYC norms.

Can Units of all Mutual Funds & all Schemes be subscribed or redeemed using Online Mutual Fund Platform?

Asset Management Companies (AMC) desirous of offering Online Mutual Fund Platform Services to their existing & prospective customers enter into an arrangement with the Exchanges & only schemes of such AMCs would be available on Online Mutual Fund Platform. All schemes which are available on Online Mutual Fund Platform would be informed to the Participants & investors through issue of circulars from time to time. The currently available schemes on Online Mutual Fund Platform are available on respective websites.
(https://www.nseindia.com/products/content/equities/mutual_funds/mfss.htm )
(https://www.bsestarmf.in/RptSchemeMaster.aspx)

Whom can I approach for placing order on Online Mutual Fund Platform?

Only Trading Members like us who have obtained AMFI Registration Number (ARN) from Association of Mutual Funds of India (AMFI) are eligible to participate in Online Mutual Fund Platform & we have registered with lot of AMCs to offer subscription/redemption services for their Mutual Fund Schemes.

Are there specific timings when Online Mutual Fund Platform orders could be placed?

Online Mutual Fund Platform would be available for placing of orders between 9.00 am & 2.30 pm on all the working days of the Exchanges.

If you already have an existing relationship with us, what would be the additional documentary requirement for registration in Online Mutual Fund Platform?

We would require you to sign up following 3 documents:

  • Know Your Client procedure as mandated by CDSL Ventures Ltd.
  • Letter consenting to participate in Online Mutual Fund Platform.
  • Authority letter for Adjustment of funds & securities in Different Segment & Exchanges.

What are the Know Your Client (KYC) requirements for a Mutual Fund Investor like you?

Every investor investing in mutual funds has to necessarily complete KYC norms .The Association of Mutual Funds of India (AMFI) has facilitated a centralized platform to carry out one time KYC procedure on behalf of all Mutual Funds. Once the KYC is duly completed in all regards, you need to produce a copy of the acknowledgement when investing for the first time in a Mutual Fund. There is no need to repeat the KYC process individually for each mutual fund.
For more details on KYC visit following sites:
http://www.amfiindia.com/showhtml.aspx?page=kyc
http://www.cvlindia.com/faqs01.html

Should mutual fund units be held in physical form or demat form?

You have the choice of holding units either in physical form or in demat. However, for convenience of operations & ease of entry & exit it would be advisable for you to hold the units in demat form.

For the purpose of holding units in demat account, is there a requirement of opening a separate demat/trading account?

If you already have an existing demat/trading account with us, same account can be used for holding mutual fund units in demat form.

After I provide you with all particulars along with required documents for registering me as a client would I get any ID or code allotted?

After receiving complete particulars from you, we would allot a Unique Client Code (UCC) to you.

When I wish to subscribe for a mutual fund through Online Mutual Fund Platform, what are the details I would need to give you for placing the order?

For placing a subscription order, you would need to give your UCC, Name of the Scheme, the value (i.e. money) that you intend investing into, whether you would like units in physical form or demat form, whether your subscription is fresh (first time investor for a Mutual Fund company) or additional. In case you choose physical option for an additional purchase you need to provide the existing folio number also.

At the time of placing order if I make a mistake in giving details would I be in a position to correct or modify the order?

Orders can be placed between 9.00 am to 2.30 pm. Within this time period, you would be able to request us for correction if any including cancellation of order or placing a fresh order altogether.

What will be the Net Asset Value (NAV) that I would get for the value that I decided to invest?

For all orders received up to 2.30 pm, NAV of the business day will be the rate at which units would be allotted to you. Illustratively if you invested Rs. 1 Lakh, NAV of the scheme is say Rs.10/- you would get 10000 units allotted to you.

For subscription, how should I make payment?

For subscribing to online Mutual funds through Online Mutual Fund Platform, you need to make payment in favor of “Sushil Financial Services Pvt. Ltd.” necessarily through Cheque/Demand Draft or via an online transfer into your ledger account using your login. We are obliged to place order only when clear balance is available in your ledger account.

When would I get credit of units to my demat account?

Post 3:00 pm exchange would provide your order details to Mutual Fund/AMC/RTA & to your Depository for validation. On receipt of valid order information from both of these entities, on T+1 day as per the settlement calendar(currently at around 10.00am),Exchange would debit our Settlement account towards all valid orders & then transfer the money to the concerned AMC/Mutual Fund Company. Thereafter the AMC/Mutual Fund/RTA would process the subscription request & credit units to your demat account by T+1 end of the day.

Once my subscription order is placed on the Online Mutual Fund Platform, what confirmation would I get from you?

Immediately on placing of order on Online Mutual Fund Platform, we would be in a position to confirm the details of your order & same can be viewed online on MF Click. By the following day we would be able to issue transaction confirmation memo containing particulars like Mutual Fund, Scheme, Value of subscription, Physical/Demat mode, Transaction charges & Service Tax applicable. In cases of rejection of the order, reason for rejection would also be communicated by us.

What are the particulars that I need to provide you with while placing redemption order?

At the time of placing order for redemption with respect to demat units, you need to mention your unique client code, name of the Mutual Fund, Scheme, & Number of Units to be redeemed. In respect of redemption of physical units, order would be placed by us on receipt of necessary redemption request form along with documents including statement of account issued by mutual fund reflecting your units. We would then send the papers to RTA/Mutual Fund & then, the RTA/MF would process redemption request & send the payment directly to you. If the physical papers do not reach the RTA/MF within the time stipulated for the purpose, orders may get invalidated.

Once my redemption order is placed on Online Mutual Fund Platform, what confirmation would I get from you?

Immediately on placing of order on Online Mutual Fund Platform, we would be in a position to confirm the details of order & same can be viewed online by you on MF Click .By the following day we would be able to issue transaction confirmation memo containing particulars like Mutual Fund, Scheme, Value of subscription, Physical/Demat mode, Transaction charges & Service Tax applicable. In cases of rejection of the order, reason for rejection would also be communicated by us.

When & how would I get redemption proceeds?

“National Securities Clearing Corporation (NSCCL) on T+1 day at the specified time would transfer units from pool account to the concerned AMC/RTA’s pool account. Thereafter AMC/RTA would process the redemption request at Transaction day’s NAV & directly credit the proceeds to your ledger balance. Please note procedure for credit may vary from fund to fund.

What are the charges that I need to pay for utilizing your services for placing orders on Online Mutual Fund Platform?

There are no regulatory restrictions on the fees to be charged by us for services rendered on Online Mutual Fund Platform. However, you may mutually agree with our mutual fund department on the transaction charges for services rendered on Online Mutual Fund Platform. Service tax would be applicable on charges so levied by us.

Through which channels/mediums, do I intimate any changes to my personal information?

Changes to personal information would have to be communicated by filing the demat modification form along with communicating requisite changes to AMFI’s centralized KYC platform managed by CDSL Ventures Ltd..

(a) If I have paid my money for subscription but not received units to my credit OR (b) If there is significant delay in placing of my orders despite availability of clear balance which has impact on units allotment price, whom should I approach for resolution of my grievance?

You should first approach our Mutual fund department for resolution of your grievances, & if not satisfied then you can approach the investor services cell of the Exchange for resolution of dispute relating to service rendered by us.

Are there any restrictions on maximum value or quantity for a single order on Online Mutual Fund Platform?

In case of demat transactions the maximum value of subscription or redemption for a single order is pegged at Rs. 1 Crore & there is no restriction on number of orders that can be placed. However, with reference to redemption of physical units a maximum limit of Rs.1,00,000/- per order has been kept.

Registered Office : Sushil Financial Services Private Limited., 12, Homji Street Fort Mumbai-400 001 • Tel. No. +91-22-40936000 • Fax No. +91-22-22665758 • Email: info@sushilfinance.com

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.Receive alerts on your Registered Mobile number for all debit and other important transactions in your demat account directly from CDSL on the same day. Prevent unauthorised transactions in your account Update your mobile numbers/email IDs with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day.

Sushil Financial Services Private Limited - Member : BSE/ NSE/ MSEI. SEBI Registration No. - INZ000165135. Depository Participant (CDSL) SEBI Registration No.- IN DP CDSL 194-2002. Research Analyst SEBI Registration No.- INH000000867. Distributor of Mutual funds and IPO - ARN No.77875. Sushil Global Commodities Private Limited - Member : MCX / NCDEX. SEBI Registration No. - INZ000025633 . Sushil Capital Private Limited - NBFC No. N -13.01901

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