BSE MF distribution platform creates a record

| Updated: July 8, 2021 8:21 pm

Asia’s oldest stock exchange, the Bombay Stock Exchange added another feather in the cap as it recorded the highest contribution in the industry net equity inflow by contributing Rs 6,072 crore against the total equity inflows of the industry of Rs 5,998 crore in June.

As investors are queuing up for registration with stock exchanges, mutual fund (MF) investments are not far behind. New flows in schemes that invest primarily in equities were at a yearly high in the previous month. Now, Bombay Stock Exchange’s mutual fund distribution platform has registered the highest ever transactions in June.

“BSE’s fund distribution platform known as BSE Star MF has created a record. In June, the platform processed 1.29 crore transactions worth Rs. 36,232 crores, despite the devastating Covid-19 outbreak and distributors channelizing their transactions through online platforms,” the stock exchange said in a release. The previous highest monthly transactions were 1.14 crore in May.

It should be noted that investors are also directly registering with exchanges. The number of registered investors on the Bombay Stock Exchange (BSE), has increased by 40.5 per cent or 2.05 crore in June from a year-ago period. Similarly, the pace of new registered clients on the National Stock Exchange (NSE) has more than doubled. In June 2020, new client registration with NSE was 5.64 lakh, it increased to 14.84 lakh in May this year.

Systematic Investment Plans (SIPs a benchmark to track MF investment by retail clients) also achieved the highest ever new registrations. The platform registered 7.83 lakh new SIPs in June compared to 6.88 lakh in May. “Total SIP registration on the platform now stands at 98.80 lakh. For June new registration was 7,83 crore with inflows amounting to Rs186 crore,” BSE said.

For the first quarter turnover on the platform was Rs 1,01,418 crore compared to Rs 85,420 crore registered in the previous year, an increase of 19 per cent. In the equity segment, BSE Star registered total net inflows (that is new investment in the equity schemes) this year increased by 18 per cent to Rs 6,072 crore. For the first quarter (April to June) total equity inflows increased by 82 per cent to Rs 16,676 crore. On the mobile app of the platform, it has processed over 26 lakh transactions since its launch amounting to Rs 13,235 crore.

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