BSE launches eKYC services on StAR Mutual Fund for seamless onboarding of investors

Leading stock exchange BSE on Tuesday launched eKYC services on its mutual fund platform, a move that will provide seamless experience of onboarding to a new investor.

Besides, the exchange is planning to provide eKYC services to stock brokers and other approved intermediaries in the near future, BSE said in a statement.

To provide this facility to brokers, the bourse will issue Application Programming Interface (APIs) for such brokers and other intermediaries to connect their IT systems to BSE's eKYC system.

BSE StAR MF launched BSE eKYC services -- which is Aadhaar and video KYC based investors onboarding solution -- with effect from Tuesday.

Spelling out key features of the eKYC solution, the exchange said it is a user friendly web and mobile interface for different participants of mutual fund industry. It allows digital verification of KYC documents and is integrated with KRA (KYC registration agency) systems.

Investors will experience real-time approval in case of successful verification of all IDs and documents.

"BSE StAR MF is the first MF platform to enable eKYC, which will go a long way in improving the experience of onboarding investors in a seamless manner. It will simplify the KYC process and improve the TAT (turn around time) for completing it,? said Ganesh Ram, Business Head " Mutual Funds at BSE.

"With the superior systems, it will bring in more operational efficiency by reducing error prone and time-consuming human efforts. Consequently, reduce the investor acquisition cost," he added.

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BSE StAR MF contributed Rs 56,038 crore as net equity inflows in 2019-20, which is 66 per cent of the mutual fund industry's net equity inflow of Rs 83,781 crore.

The platform achieved 5.75 crore transactions in 2019-2020.