BSE will introduce manual entry facility with regard to compliance for global tax avoidance law FATCA on its mutual fund trading platform from August 1.
“Manual entry facility for FATCA will be going live with effect from August 1, 2016 on BSE STAR MF Platform,” the exchange said in a circular.
BSE had said in January that mutual fund houses would have to mandatorily provide compliance details for the global tax avoidance law FATCA with regard to each client on its MF trading platform.
The exchange has a mutual fund trading platform, BSE STAR MF. It became operational for all investors in December 2009.
Under FATCA (Foreign Account Tax Compliance Act) of the US, India and other signatory countries have agreed that all financial institutions will follow enhanced KYC (Know Your Client) procedures to identify accounts of the US and other foreign taxpayers on an annual basis.
Besides, BSE would introduce a multi-bank facility for distributors to register clients on the exchange’s mutual fund platform from August 1.
Currently, mutual fund distributors can register only one bank account while registering the client on the BSE STAR MF Platform.
The exchange would introduce the multi-bank facility in UCC registration for non-demat transactions. This facility allows mutual fund distributors to register up to five different bank accounts for their respective clients.