Bombay Stock Exchange (BSE) has introduced digital (paperless) Systematic Investment Plan (SIP) for mutual fund investors. The launch of this facility is expected to drastically reduce the registration time for new subscribers, while additionally allowing investors to complete transactions using online payment formats such as internet banking.
As per this new facility launched by BSE, filling out or depositing paper forms will no longer be necessary, which would reduce the chances of erroneous documentation and application rejection. Subsequent to the introduction of the new iSIP, investors would receive a range of instructions via email for multiple payment modes such as cheque, one-time mandate, nodal account and direct pay.
At present, the option of this paperless iSIP is available through BSE Star MF and it provides mutual fund distributors with the option of registering SIP transactions on behalf of their clients who can make their iSIP payments through multiple transaction methods including internet banking. Earlier, such distributors could only register Exchange SIP (XSIP) on behalf of their customers and the available mode of payment was limited to electronic clearing system (ECS).