How is Zerodha going register e-mandate on the BSE Star MF platform post this notice from BSE?
NOTICES
Notice No. 20181122-48 Notice Date 22 Nov 2018
Category Trading Segment Mutual Fund
Subject Suspension of E-Mandate Registration
Content
Further to our Notice No. 20180119-23 with respect to ‘Introduction of E-Mandate on BSE StAR MF platform’, MFIs/MFDs/RIAs are hereby informed that the said facility of E-mandate registration (manual/bulk) is suspended with immediate effect till further notice on BSE StAR MF Platform. There is no impact on Mandate registration in Physical and Scan mode.
Ketan Jantre Zeeta Eustace
Sr. General Manager – Mutual Funds Asst. General Manager – Mutual Funds
We hadn’t gone live with the e-mandate (which uses AADHAR to sign the e-nach). This has been stopped by NPCI, so no one will be able to offer this for now.
I wish to know, how Zerodha as a discount brokerage house is undertaking mutual fund transactions i.e. SIP and lumpsum purchase transactions on BSE StAR MF platform in absence of e-mandate registration.
How is the payment being routed from client’s Bank Account to BSE StAR MF platform.
But once the funds are deducted from client’s trading account, where are the funds routed? Are the funds routed through BSE Star MF platform or are they routed directly to the Asset Management Company (AMC)/ Mutual Fund House?