Does Mutual Funds: How Sebi’s order to execution-only platform will impact MF investors | Mint? Mean that there is no regulatory body regulating the Jupiter mutual funds? And if there is some issue like I have buyed the mutual funds but the units not allocated to me because of some reason which might mean that Jupiter have taken the money and not given to aiapl or the AMC then I can’t complain in the sebi or rbi currently. Similarly for the other apps like the et money?
No, Jupiter will be regulated by SEBI only. It is just that SEBI now came up with new regulations.
The background is - As per SEBI, only Register Investment Advisors (RIA) can sell direct mutual funds. Almost all digital platforms (except PhonePe and Scripbox) are RIAs but they don’t provide advisory services. They only facilitate transactions in direct mutual funds i.e. execution-only platforms.
So, to close this loophole, SEBI came up with the Execution-only platform (EOP) regulations. Now, EOP platforms will only provide execution services only.
The mutual fund industry is a highly regulated industry. SEBI has mandated that the money should be directly transferred from users’ bank accounts to AMCs accounts. At Jupiter, we transfer money from users’ bank accounts to AMCs bank accounts, there is no intermediatory. So, your money and investments are secure with Jupiter.
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I was reading the circular so now I can change my email and phone number separately for the mutual funds?
By the way, I don’t see any option to update the bank details in the Jupiter mutual funds. Seems like they will have to provide some mechanism for it till September because I currently thinks it a major disadvantage of the Jupiter app that I can’t have withdraw the funds in some other bank account currently. Or have I understood the circular incorrectly by the term of the updating the bank details.
I have completely read the circular. And seems like you will to do a lot of the compliance and seems like till is not going to remain free as you also can’t advertise.
I’m quite unsure if you can even do lot of the compliance in the 3 month time https://www.sebi.gov.in/legal/circulars/jun-2023/regulatory-framework-for-execution-only-platforms-for-facilitating-transactions-in-direct-plans-of-schemes-of-mutual-funds_72479.html
Hi Abhinav,
We will be compliant by the said date.
“the services will not be free”: This will not be the case. We don’t advertise or charge our customers for anything. More importantly, it’s the category of EOP which will define if customers pay for services or not. Category 2 EOP will have the choice to charge the customers, not Category 1.
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We will be compliant with EOP regulations within 2 months. 
We have already started working on it.
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Actually I my self assumed that you are choose the category 1. But tell me so, if you are charge the AMC then it might be possible that a Amc deny to do the business with you and then that Amc mutual funds will not be available on the Jupiter. Although I already found many mutual funds amc mutual funds not listed in the Jupiter.
Good, by the way, I know that most of the software project estimates go wrong but still you have taken a good float.
By the way, do you also have the lawyers in your team. Because they are definitely law documents which are hard to understand.
Doe the point d mean that we can only import the external mutual funds in category 1? " The entity may act as an aggregator of the transactions in direct plans of schemes of Mutual Funds and provide services to investors/other intermediaries. " if not so what does it mean.
How is the work going on this circular.
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