MUMBAI: The Securities and Exchange Board of India (Sebi) on Thursday said it has allowed investors to directly access stock exchange infrastructure to purchase and redeem mutual fund units. The markets regulator pointed out that it had earlier allowed mutual fund distributors and registered investment advisors to use the platform for purchase and redemption of mutual fund units. “In order to further increase the reach of the platform, it has been decided to allow investors to directly access infrastructure of the recognised stock exchanges to purchase and redeem mutual fund units directly from MutualFund/ Asset Management Companies.” the regulator said in a release. Sebi has directed recognised stock exchanges, clearing corporations and depositories to make necessary amendments to their existing bylaws, rules and regulations, wherever required to enable this framework. “A large set of investors who invest directly have to do so through each specific mutual fund’s website.

That was a logistical challenge.

The Sebi’s move would make investing in mutual funds operationally efficient,” said Vishal Dhawan, Founder at Plan Ahead Wealth Advisors, a financial planning firm. “However, the availability of infrastructure should be prudently used, so that investors don’t start ‘trading’ in mutual funds,” added Dhawan.